Ready to buy a home? Read this first

If you’re considering homeownership, here’s what you should know.

Get prepared for the costs involved

Down payment

You likely need money up front for a down payment. The good news is, most first-time homebuyers put down less than 20%.

Fees & expenses

You’ll need to keep some extra cash on hand for expenditures such as closing costs, moving expenses, etc.

Maintenance

Remember to put money into an emergency fund for unexpected repairs such as a broken water heater, leaky faucet and general upkeep.

Down payment options

Down payment options

You may qualify for a conventional mortgage with less than 20% down, though doing so may require you to pay private mortgage insurance (PMI). The Affordable Loan Solution® mortgage from Bank of America can help eligible modest-income borrowers secure a home loan with a down payment as low as 3 percent and no PMI required. In addition to conventional loans, there are other low-down-payment mortgage options, such as government FHA or VA loan products.

Keep the benefits in mind

Creative control

Change the paint color, knock down a wall to open up the living area or build an addition—it’s your home, and you’re the boss.

Tax benefits

It’s possible to save money on your taxes by deducting your interest payments come tax time. Talk with your tax professional for details.

Sweat equity

You can increase your home’s value with a little elbow grease and manual labor—a benefit not available with a rental.

Housing market risks

Housing market risks

Keep in mind that you could lose equity based on several market conditions, including the overall economy. Before you buy, discuss potential risks with your lender or an advisor.

Close Disclaimer
The material provided on this website is for informational use only and is not intended for financial or investment advice. Bank of America and/or its affiliates, and Khan Academy, assume no liability for any loss or damage resulting from one’s reliance on the material provided. Please also note that such material is not updated regularly and that some of the information may not therefore be current. Consult with your own financial professional when making decisions regarding your financial or investment options.

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