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