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Buying a home can be one of the best decisions you’ll ever make. However, deciding if you should rent or buy your next home can be a very difficult decision. But once you understand the benefits of owning a home, you can have confidence as you move through the home-buying process.

You Can Save Tons

Buying a home is usually a good investment. That’s because home values continue to rise, while rent prices are also reaching higher levels. So whether you plan on living in a home full-time or you decide to make it a rental property, buying a home can be a smart financial decision. This is even more true if you keep the home for a long period of time. If you look at the data, home prices have skyrocketed dramatically. Back in the 1940s, the average price of a home was around $30,000, according to The U.S. Census Bureau. In the year 2000, that jumped to nearly $120,000. While there aren’t many people who still have a house from the 1940s, this example shows you how home value can increase over a period of time. That being said, buying a home and keeping it around can do wonders for your wallet.

There Are Tax Breaks

While it depends on your individual situation, mortgage interest and certain closing costs are typically tax-deductible. Furthermore, these tax breaks are higher early on in homeownership given the high-interest payments. In addition, mortgage insurance and property taxes might also be tax-deductible. This provides a huge benefit to homeownership, but things get even better: once you decide to sell your home, you can make up to $250,000 in profit and all of that is tax-free. Tax breaks add comfort for homeowners and provide key incentives that be very worthwhile.

It Can Improve Your Credit Score

Another key benefit that comes with homeownership is that you can improve your credit score. This is especially true for those who don’t have a long credit history or many installment accounts. Paying your mortgage shows that you’re a responsible borrower and that you can be trusted. Also, credit bureaus will reward you more for mortgage payments compared to payments for credit cards, student loans, etc. Additionally, very few landlords will report rental payments, so you’re not doing any favors for your credit score by paying rent every month.

Homeownership can be a scary thought, but understanding the benefits involved can help you make the right choice for your needs.

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For a homeowner who wants to make green improvements and renovations to their personal property, the Conditions, Covenants & Restrictions, or CC&Rs, of the local homeowner association can pose problems that cost time, money and freedom of choice. This is especially true for homeowners who wish to make structural or aesthetic changes to existing homes. Here are only a few of the battles you might face when the local HOA discovers your plans for going green in a traditional or historic neighborhood.

Your Planned Solar Panels Aren't Warming Anyone's Hearts

While some HOAs may interfere with your choice of color of solar panels, others may not permit them at all. It's an aesthetic dilemma. Allowing solar panels on one home differentiates it from the others. In a community that's built upon history or tradition, individuality is rarely a good thing. If you're thinking of adding solar panels to a home that's governed by an HOA, you may be forced to buy certain-colored panels, or you may be banned from adding them at all. Consider this before buying a home, if you plan to make green upgrades in an area that features a homeowner association.

Your Energy Efficient Windows Are Getting a Cold Reception

Windows that feature double-paned glass or visible solar tints may get you in hot water with your HOA. Changing out historic windows and doors for more energy-efficient versions should be advantageous, right? Not if doing so sets your home apart from your neighbors or your condo unit apart from the rest of the building. If you want those new, modern windows that lower the cost of your energy bill over time, and you live in a home regulated by an HOA, prepare to fight for your right for window replacement. 

Your New Cool Metal Roof Is Being Hotly Debated

Cool metal roofing is all the rage for homeowners who live in dramatic climates. Cooler in summer and warmer in winter, they'd be a big improvement over those old cedar shakes your home is currently rocking. But you'll probably never experience the convenience of cool metal if you live in an historic area where cedar shakes abound. While your HOA can't prevent you from repairing or replacing a failing roof, they can legally limit the materials you use to do it. 

While homeowner associations do a lot for the communities they serve, they can cause consternation to those homeowners who place value on energy efficiency above historic appeal. If you're planning to buy or renovate a home that's regulated by the CC&Rs of the local HOA, make sure you completely understand the limitations they impose before you buy. Once in, you're bound by the rules you agreed to follow, even if it means sacrificing energy efficiency in lieu of tradition. 

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Buying a home should be a problem-free experience. Yet issues may arise that make it tough to acquire the perfect house at an affordable price.

Common problems that come up during the homebuying journey include:

1. Lack of Home Financing

Before you search for a home, it generally is a good idea to get pre-approved for a mortgage. That way, you can kick off a house search with a budget in hand.

To get pre-approved for a mortgage, you should meet with banks and credit unions. These financial institutions can teach you about a variety of mortgage options and help you get approved for home financing in no time at all.

Of course, if you have questions as you pursue a mortgage, don't hesitate to ask a lender for assistance. Lenders employ courteous, knowledgeable mortgage specialists who are happy to respond to your queries without delay.

2. Temptation to Submit a Lowball Offer to Purchase

Once you find your ideal residence, you may be tempted to submit an offer to purchase at or below a house seller's initial asking price. But doing so may be problematic, particularly for a homebuyer who wants to acquire his or her dream residence as quickly as possible.

If you submit a lowball offer to purchase a house, a seller likely will reject the proposal. Worst of all, a rival homebuyer may swoop in with a competitive offer to purchase this residence – something that may cause you to miss out on the opportunity to buy your ideal home.

Ultimately, it is beneficial to submit a competitive homebuying proposal. If you allocate time and resources to learn about a home's condition and how a residence stacks up against comparable houses in the same city or town, you can craft a competitive offer to purchase. And as a result, a competitive offer to purchase may receive an instant "Yes" from a home seller, leading to a fast, successful homebuying experience.

3. Failure to Identify Problems During a Home Inspection

A home inspection is paramount because it gives you the opportunity to walk through a residence with a property expert and learn about any underlying house issues. Then, if you discover major problems with a house, you can ask a seller to complete property repairs, reduce your initial offer to purchase or walk away from a residence altogether.

Hire a home inspector who possesses comprehensive expertise – you'll be glad you did. With the right house inspector at your side, you can get the help you need to identify problems during a property inspection.

Lastly, as you get ready to search for a house, you may want to hire a real estate agent as well. This housing market professional can provide extensive guidance throughout the property buying journey and ensure you can mitigate homebuying problems before they escalate.

Reach out to a real estate agent today, and you can receive plenty of support as you navigate the homebuying journey.

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