Home Ownership

Take advantage of our relationships with local companies who offer financing, closing assistance or other goods and services to help you enjoy and maintain your new home.  Feel free to contact us with questions about our preferred partners. We have included several links to help you in the home buying process.

Getting Pre-Approval

It is a good idea to get pre-approval for a loan. It is a commitment on the part of the lender to provide you with a specific loan amount however, it is not tied to a specific house. A lender will perform a detailed review of your current financial status, and you will need to provide the lender with documentation on income and debt-related information. If you are pre-approved, it means that the lender has thoroughly reviewed your financial history, evaluated your risk, and decided that you have the ability to pay back the loan.

While pre-approval is not a requirement, it is advantageous. In a competitive real estate market, presenting a pre-approval letter to your real estate agent and to the home seller may assist you in securing a contract on a home. Since the lender has pre-approved you for a mortgage, the seller can be assured that you are serious about your offer and that the contract is less likely to fall through.

Homeownership Information Center

This is a great resource of information on all aspects of the home buying process from getting started to after the closing.

Home Ownership Offers Tax Advantages

Wells Fargo Home Mortgage

Owning a home could save homeowners thousands of dollars in taxes. Under federal law, homeowners may deduct the interest paid on a mortgage loan and, in turn, pocket substantial savings.

Homebuyers often overlook or underestimate the tax benefit of deducting interest paid on a home loan. Considering its long-term impact, interest rate deductions should be a determining factor when purchasing a home.

The specific tax advantages of homeownership are based on several factors, such as annual income, the federal income tax bracket of a household, amount and interest rate of the mortgage loan, as well as the annual taxes paid on the property.

For example, a homeowner with a $150,000 mortgage loan at 7 percent interest faces $2,000 in property taxes. During the first full year of the loan, the homeowner will pay roughly $10,500 in mortgage interest. Combined with the property taxes, the homeowner can deduct $12,500 before calculating taxes. A homeowner in the 28 percent tax bracket saves 28 percent of $12,500 - or $3,500.

Taxpayers know that the mortgage interest deduction is highest in the initial years, declining over time with the loan balance. So, the first few years of homeownership often provide the greatest tax benefits.

Over time, though, other tax benefits may apply. Interest costs on a second mortgage or home equity loan (with a principal balance of up to $100,000) may be deductible. In addition, homeowners can often avoid paying extra taxes on the sale of the home if they have lived in it at least two of the last five years before the sale.

Homeowners not versed on the many tax regulations are encouraged to consult a tax advisor about appropriate federal or state income tax benefits and deductions. Renters "thinking about buying a home" should also consult a tax advisor about the benefits of homeownership.

Loan Estimator Calculator

This mortgage calculator can be used to figure out monthly payments of a home mortgage loan, based on the sale price of the home, the term of the loan desired, buyer's down payment percentage, and the loan's interest rate. This calculator factors in PMI (Private Mortgage Insurance) for loans where less than 20% is put as a down payment. Also taken into consideration are the town property taxes, and their effect on the total monthly mortgage payment.