Home Loan and Mortgage buyers' tips

Buyers' Tips

Things to consider before buying or refinancing your home.

Rent vs. Buy

Tax Benefit

Things to Consider Before Buying

Avoid opening new lines of credit at least 3 months prior to purchasing a home.
Revolving Credit (i.e. Credit Cards, Dept Store, etc) lowers your Credit Score as compared with Installment loans (i.e. Car Loans, Mortgage, etc).
Avoid making a major change in your profession at least 2 years prior to purchasing a home.
Get a complimentary Credit Report every year from all 3 Credit Bureaus (Transunion (www.transunion.com), Equifax (www.equifax.com) and Experian (www.experian.com) at least once a year.
Save at least 12 months worth of cancelled checks if you are renting from a private individual. This will serve as a rental verification.
You will need the last 12 - 24 months copies of your bank statement if you are self employed. This will serve as verification of income
There are programs available for individual who have filed Chapter 7 or Chapter 13 bankruptcy within 2 years or less.

Rent vs. Buy

Should You Buy a Home?

Yes! Yes! Yes!

Don't take my word for it, CHECK IT OUT!

When your buy a house a monthly mortgage serves as a type of scheduled savings plan. Over time, you gradually accumulate what lenders call "equity", an ownership interest in the property that can often borrow against or convert into cash by selling the house.
In contrast renters MUST continue paying rent to a landlord for as long as they
rent, WITHOUT OPPORTUNITY TO BUILD UP EQUITY!

BELOW IS AN EXAMPLE OF WHAT THE LANDLORD GETS VS WHAT THE HOMEOWNER WOULD GET OR MORE.

MONTHLY RENT	AFTER 3 YEARS	AFTER 5 YEARS
800	28800	48000
850	30600	51000
900	32400	54000
950	34200	57000
1000	36000	60000
1050	37800	63000
1100	39600	66000
1150	41400	69000
1200	43200	71000

Owners also get tax benefits!

Tax Benefit

Home Mortgage Interest Deduction

Generally, home mortgage interest is any interest you pay on a loan secured by your home (main home or a second home). The loan may be a mortgage to buy your home, a second mortgage, a line of credit, or a home equity loan. In most cases you will be able to deduct all of your home mortgage interest.( See www.irs.gov – Publication 936 for more information)

Home Office

You may deduct expenses related to the business use of part of your home. (See www.irs.gov –Publicaton 587 for more information)

Moving Expense

Deduction of certain moving expenses is permissible under certain conditions. (See www.irs.gov – Publication 521 for more information)

Property Taxes

Deductible real estate taxes are generally any state, local, or foreign taxes on real property. You can deduct real estate taxes imposed on you. You must have paid them either at settlement or closing, or to a taxing authority (either directly or through an escrow account) during the year (See www.irs.gov –Topic 503 for more information)

Mortgage Tax Credit

The mortgage interest credit is intended to help lower-income individuals afford home ownership. If you qualify, you can claim the credit each year for part of the home mortgage interest you pay. (See www.irs.gov – Publication 530)

Home Mortgage Points

The term "points" is used to describe certain charges paid to obtain a home mortgage. Points may be deductible as home mortgage interest, if you itemize deductions. If you can deduct all of the interest on your mortgages, you may be able to deduct all of the points paid on the mortgage. For information on deducting interest, refer to www.irs.gov –Topic 504.

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Windsor Capital Mortgage Corporation | 130 Iowa Lane, Suite 203 | Cary, NC 27511
Phone: 919-462-1500 or 866-440-0404 | Fax: 919-469-4500 | EFAX : 888-201-9151