When financial advisors say that homeownership is a good investment, they are referring to the value that your home gains over time. This value is called home equity. Home equity is the difference between the amount you may still owe on your mortgage and what your home is worth.
Equity is important for several reasons. In addition to being a measure of the hidden wealth you have in your home, it is also an asset you can tap when the need arises, and protection against losing your home should you suffer a financial reversal. Almost all experienced home buyers use the equity in the home that they are selling to make a significant down payment on the home they are [...]
Renting a home is a great alternative for those who are new to an area and are not quite sure where they want to plant their roots. It’s also the first step towards becoming a homeowner while getting one’s finances in order. But what happens when you end up falling in love with the property you are renting? Approaching your landlord about buying the current property may seem intimidating but here are some ways to guide you through.
Have a pre-approval ready to go: This is pertinent towards any home you are interested in purchasing. However, this shows your landlord you have given this some thought and you are serious about buying from them. It also shows that you [...]