Once a person is launched on a sustainable career and has probably acquired a family, it is inevitable that thoughts will turn towards settling down and owning a home. This becomes feasible once the person has put by some money and built up an amount that can serve as a deposit that can be put down to owning a home. By this time, the person will have also laid out substantial sums of money towards rents and thus has the wherewithal to pay any required monthly payments required for a mortgage on a home.
There a lot of benefits for 1st time home buyers that a person must be aware of before taking the lifetime decision of buying and owning a property. The primary one that is the most attractive, is that such a buy can translate into benefits when it is time to pay taxes. Most initial mortgage payments are geared towards paying the interest on the loaned amount, and substantial rebates are allowed on taxes for these interest payments. Another benefit that can accrue to a 1st time owner of a home is that while mortgage payments are being made, the equity in the value of the home, goes up and can be of great help in managing future finances. This also greatly increases the credit of the person and this can be of enormous help in managing finances.
The fact that one is making regular payments of a mortgage gives another of the benefits for 1st time home buyers. The discipline of arranging for and making regular mortgage payments can be of enormous help in the long run and introduce an element of financial discipline that can always stand one in good stead. A further benefit comes from the fact that any investment made in the home can always be a wise one, especially if realty prices continue to go higher.
A first time buyer is classified as one who has not purchased a home for a period of three years, and this classification allows many other people than younger persons who normally fit into this category. Tax credits up to a value of $8,000 make for substantial savings that can then go towards making mortgage payments or deposits. This is a credit that does not have to be paid back and can even go up to ten percent of the value of the home. However there is a restriction that homes that have availed of such tax credits cannot be sold for a period of three years, unless there are mitigating circumstances. Qualifying for these benefits however does require that the income of the family is less than $150,000 per year. The necessary paperwork does have to be submitted to avail of these credits.
The present economic scenario has brought in its own benefit for first time buyers of homes. The present market is a buyer's one and this allows a buyer to find homes at low prices, and getting a good price on many foreclosed properties can lead to very excellent buys. The situation has also led to lenders being more eager to lend, and thus arranging for finance has become that much easier.
