Purchasing a home can feel like a daunting task. The legal and financial details can make the buying process seem overwhelming even in a normal housing market. But in a white-hot market like today’s, it’s even more important for homebuyers to have an expert at hand.

Penn Community Bank’s team of local residential lending professionals is here to help.

That starts with understanding the pros and cons of homeownership.

Autonomy and Independence

A primary plus to owning a home is … owning the home.

In purchasing a residence, new homeowners gain more space, generally quieter surroundings, and the freedom to decorate, remodel, and reconfigure without restriction (except zoning or budgetary ones).

Young professionals who are still living with parents may especially appreciate owning their own nests. And truth be told, mom and dad may be just as eager to see their fledgling fly.

Growing families and even downsizing seniors can all enjoy the pride and independence associated with holding a deed of their own.

Financial Factors

Although the outlay for a down payment and a monthly mortgage installment can be intimidating, there are financial benefits in a residential real estate investment.

The first is self-evident for former tenants: No more rent payments.

Not only does this monthly outlay cease, the outflow for mortgage payments, albeit more, becomes a long-term investment. At some point, after many payments, the buyer will own the home outright. And reap its benefit when sold to someone else.

Homeownership is not only an investment, it’s a pretty safe one at that. Home values can dip and slide, but except for rare instances, they climb, providing a substantial return on the investment.

The current run of climbing home prices across Bucks County and elsewhere, for example, has been a boon to homeowners divesting themselves of one of their most valuable assets.

Clearly, owning a home can be a worthy strategy for building wealth and accessing its associated benefits.

Tax Breaks

Purchasing and owning a home can represent an advantage on April 15.

Deductions are possible for:

• Home-owner related tax breaks on mortgage interest
• Real estate taxes
• Mortgage discount points (portions of a borrower’s mortgage interest paid initially, to lower the interest rate)
• Medically necessary home improvements
• Use of a mortgage credit certificate, a state housing finance agency incentive to low- and moderate-income first-time homebuyers

A consultation with a tax advisor on particulars regarding these deductions is always recommended.

Braving the Process

The good news surrounding all the home-purchasing incentives (general and tax-related) is that first-time homebuyers need not navigate the process of obtaining them alone.

Penn Community Bank has numerous mortgage lenders who are skilled in helping borrowers start-to-finish in the tasks associated with locating, financing, and closing on a dream property.

With their assistance, homebuyers — seasoned or not — can soon be punching codes on the keyless entry of their new homes and crossing thresholds to new lives.

More Information

For tips and insight on the first-time homebuying process, download Penn Community Bank’s free The Basics: Buying Your First Home eBook.