Home Ownership for Military Families – 5 Tips
Purchasing a home is a weighty decision for everyone, but for Military families, there are many factors to consider before jumping into the home owner’s pool. Military families live a lifestyle unique from many in the economy. Moving from Fort Bragg, to Washington DC and then on to Fort Leavenworth could make even the most even keeled real estate professional’s head spin. Not only are military “frequent movers”, but there are often deployments or TDYs that increase the need to analyze if purchasing a home is right for your military family.
Are you ready to buy a home financially? The evaluation of your credit and your financial history by lenders will actually be a report card that determines your eligibility and loan interest rate. Additionally, your ability to supply a down payment can also affect the interest rate and the type of mortgage you can receive.
Expected Time at a Current Duty Station
In the current real estate climate it is very important to consider the length of time that you expect to reside in the home before you make a purchase. Markets that were once assured to appreciate may now be either stagnant or on the decline. Once you have outlaid savings for closing costs or a down payment, a short term home ownership may not redeem those debits to your precious savings.
Tax Benefits vs. Actual Costs
Yes, the mortgage deduction on your income taxes is significant! But, does it overcome the money that you will outlay on closing costs, repairs, upgrades and home owner association fees for just a few years of ownership?
Market Climate if you PCS
If you are not planning on retiring from Military life soon, you are probably looking at a move sometime in the next three years. If you have your financial house in order to buy, this may be the most important part of your decision about purchasing a home.
You have to know yourself and what you are willing to do or do without.