CHAIN of MN - Home Ownership

Benefits of Home Ownership

Besides giving you feelings of pride and comfort, home ownership can be a great investment tool. Consider home ownership as a type of scheduled savings plan. As a benefit, you often can borrow against the equity you build or convert it to cash if you sell the home.

Think owning a home can't save you money? Think again. Another benefit of home ownership is the amount of money you'll likely save in taxes. The interest paid on your mortgage is usually tax-deductible and can save you a substantial amount each year in federal income taxes. Any payment you make on your loan may also be deductible.

Houses can increase in value over time. In many parts of the country, homes sell at a higher price than when they were purchased - this is called "appreciation." This increase in value means the homeowner has essentially increased his or her net worth.

And don't forget the other benefits of home ownership, the opportunity of owning a home will increase your self-esteem, and brings you a huge step closer to achieving self-sufficiency. You often feel that you play a bigger part in your community while realizing the American dream of home ownership.

Frequently Asked Questions

Question: Does my work history play a role in getting a mortgage?
Answer: Yes! A lender considers you to have steady employment if you have been working consistently for at least the past two years. However, even if you have been working continuously, you still may not automatically qualify for a mortgage. Likewise, not working continuously for the past two years does not necessarily mean you won't get a mortgage. Lenders are looking for work stability.

Can you reasonably explain any gaps in your employment history? Lenders will ask you this question. Reasons for gaps in your employment history include:

Recently finishing school
A temporary layoff
Suffering an illness that prevented you from working
A discharge from the military?

Question: How does my existing debt affect my getting a mortgage?
Answer: Lenders want to see a history of debts being duly repaid. Your lender will order a merged credit report from the three major credit bureaus to verify your amount of debt, your monthly payments, and how many months or years you have left to pay off your debts. Click here to learn more about credit reports.

Having a good credit record means you have a provable history of paying your rent and other bills on time. This report tells the lender that you pay your obligations on time and use credit wisely. If you have an unfavorable credit report, it may mean you do not pay your bills on time or you currently have more credit obligations than you have been able to handle. Lender credit standards vary, but being late on a payment or having gone over your credit limit once or twice doesn't necessarily mean you don't have good credit. But a pattern of not paying accounts will affect your ability to get a mortgage loan and could mean you will pay higher interest rates.

If your accurate credit report shows you do not have a good credit rating, now may not be the best time to apply for a mortgage loan. Instead, take some time to improve your credit report by bringing your payments up to date, paying off some of your debts, and working on paying your bills on time. You can still build a profile over time that shows you are a good candidate for a loan, even if you have had serious credit problems in the past. Contact us to find help regarding budgeting and arranging repayment plans.

If you feel your ready to own a home and believe you meet all or most the requirements to qualify for a mortgage please contact us to start your mortgage possess, E-mail us or call (612) 588-7567