Considering the tough times home owners and the real estate market are experiencing, it can be a very favorable time to be a first time home buyer. Home prices are down, inventory is high and many home owners must sell their home or face foreclosure. Another big boost for the first time home buyer is the
recently enacted 2009 American Recovery and Reinvestment Act.

     Buying your first home is both the most satisfying and the most stressful event most of us will face. 
There is the reward of having a home that is yours, without the constraints of a landlord. But there is also the fear of a large, long term  mortgage payment, property taxes and the cost of  upkeep. While Real Estate and Mortgage Professionals can help you find the right home and the right loan, only you can decide when the time is best  to assume the responsibility of home ownership. Below are just some of the factors you should consider before purchasing your first home.

Beneficial Factors of Home Ownership:
     1)  Building Equity: Every month (albeit not very much in the beginning) part of
your mortgage payment goes back into your pocket. Between paying off principal (the balance of your loan) and appreciation(increase value) of your property, home ownership is still one of
the best investments in your future.
     2)  Freedom:  Want a dog, custom room colors, a doorway through a wall, a pool in the
back yard or a brick walkway? Freedom from a landlord allows you to personalize your home
to match the needs of you and your family. Just remember, if you ever plan to  sell your home,
all remodeling too far off the mainstream  may have to be redone.
     3)  Security:  You don't have to worry whether the landlord will decide to raise the rent or
not renew your lease.
     4)  Deductions:  A large portion of your mortgage payment(i.e.-interest and property tax)
is tax deductible. As a renter, the landlord, not you benefit from these deductions. I recommend consulting a tax professional to fully explain what deductions would apply for your situation.
     5)  Positive Credit:  Accumulation of equity and a history of timely mortgage payments
improves your credit score, which allows you greater financial power.
     6)  Quality of Life:  The pride of home ownership ("your home is your castle") improves
your personal well being and happiness. At the end of a long day of work, the value of
coming home to a place of comfort, where you're the boss, is priceless. 

Responsibilities that accompany home ownership:

     1)  Financial Responsibility:  While rent payments and mortgage payments can be
similar, that is often not  the case and home ownership, when you consider insurance,
taxes and upkeep can be more than your current monthly budget may allow. Down payments 
can be required or recommended, decreasing or exhausting savings. The monthly payments
are now your responsibility to make-slip up and it will cost you in penalties and a poor credit rating. All upkeep and repairs are now yours to complete and pay for.
     2)  Less Mobility:  With the expense and time involved  to sell and purchase a home,
you can no longer move whenever you want. It requires much more than the thirty or sixty days notice you might now be accustomed to. This is one reason why choosing the right location
and style of  home is so important.
     3)  Financial Risk:  While real property usually appreciates over time(especially true
here in the Charleston area), like any investment there is always risk due to factors both in
and out of your control.
     4)  Stress:  Just like pride of ownership can have a positive effect, the responsibilities,
especially if they overburden your resources, can be detrimental. Choosing the home that 
matches your financial ability is, in my opinion, the most important consideration.