|  Here are a few issues you'll need to consider before buying a home:
Homeownership Advantages and Disadvantages
Homeownership Benefits
There are many good reasons to purchase a home of your very own. Among them is the sense of security and freedom owning can provide. As the mortgage holder, you have the right to make changes to the property. For example, you don’t need permission from the landlord or building owner to pull up or lay down carpet, change the kitchen countertops, or remodel the bathroom.
The financial advantages owning has over renting are also strong. Over time, most homes increase in value, meaning your investment appreciates.
In the first few years most of your mortgage payment is comprised of interest charges (which is tax deductable!), and after that you’ll begin to pay off the principal. As the balance of your loan declines, the amount of equity you have in the property will steadily climb.
Being a homeowner also has credit history advantages. Lenders may perceive you as a good credit risk because your home can act as security against future loans.
Homeownership Drawbacks
In many circumstances, buying a home is an expensive venture. You’ll be responsible for not just the monthly payment of principal, interest, taxes, and insurance (usually referred to by its acronym PITI) but what it takes to buy the home. Before you set foot in your very own door, chances are you are going to have to come up with quite a bit of cash for pre-purchase costs. Accumulating thousands of dollars can take a lot of time and effort. Because of the upfront expenses and the monthly outlay, homeownership is not for everyone.
Another problem associated with owing your home is that if you want or need to sell but the housing market is down, you may end up stuck with the mortgage. This can cause a lot of financial and emotional stress.
In the worst-case scenario, it is possible to lose the home to foreclosure if you are unable to make your payments. If that happens, all the money you put in to it is gone too.
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