Should You Buy A Home?

Everyone wants to buy the biggest investment in life. Some investors have become rich in purchasing homes. After the housing bubble, people are not sure about purchasing a home. A home is as good as you save funds for an unexpected job market and repairs. Most people purchase homes under these conditions as follows:
1. Impress friends with the size of their home
2. Success shows their accomplishment in life
3. Keeping up with the Jones

We are going to review "IDEAL" in purchasing a home. People should learn something from the government that approves of these guidelines to purchase a home. Let review these principles under IDEAL
1. Income-purchase income properties for investment
2. Depreciation-the government gives you 27.5 years on residential investment property to write off depreciation. The seller is tax when the property is sold which is called recapture tax.
3. Equity-as you pay down the loan balance you acquire equity into the property. Today, most people are upside down in their homes.
4. Appreciation-Before the housing bubble home, a home appreciated at least 35% per year in some areas in the United States. After the housing bubble homes have depreciated, underwater, and they are worst less in the housing market. Some people refinanced their homes several times and took out all of their equity in their home.
5. Leverage-you invest a small down payment and finance the remaining of the loan. If you purchase a home for $100,000, you put down 3.5% of the sale price which is $3,500. The lender finances $96,500 under a government loan.

Let review a smart way to purchase a home. Don't let the bank tell you how much of a home that you can purchase.
1. Base your income on purchasing a home after tax not before tax. After tax is your net income the lender qualify you for loan based on gross income.
2. Set aside three months of reserve after you purchase the home and start build your egg nest to 12 months of mortgage payments.
3. Do not refinance your home unless you are going to make a high internal rate of return on your investment.
4. Know the job market in your area if you happens to lose your job.

Credit Score Below 600

All Applicants with credit scores below 600 may still have the opportunity to purchase an affordable home. The booklet, "Increase Your Credit Score After Short Sale, Foreclosure and Bankruptcy", provides the techniques to increase an applicant's credit scores. The program offers “FREE 30 DAYS COACHING” as well as the booklet at increaseyourcreditscorenow.com

 

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