CHAPTER 9Buying a Home
Whether you're thinking of buying your first home or a rental property, you're investing in real estate. There are many things to consider and navigate as you decide whether it makes sense for you to buy a home and then go through the process. Here we go!
Buying a Home – How It Works
Most of us won't be able to (or want to) pay the entire price of the home in full (commonly referred to as paying in cash). Most home buyers pay a chunk of money up front (in the form of a down payment) and finance the rest using a specific type of loan called a mortgage.
Before we talk about the home-buying process, it's important to answer a few questions.
Rent versus Buy?
Ah, the “American Dream.” Own a home with a two-car garage and a white picket fence and you're on your way to happiness, right? Not quite. There are many misconceptions about homeownership. A big one is that it makes financial sense for everyone to own a home and paying rent is a “waste of money.” Homeownership doesn't make sense for everyone and there are many factors to consider before taking the leap.
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