The tax deductions that you’re eligible for while having a mortgage certainly is a great reason for buying a house, but there’s more to buying than just tax deductions. Remember that the deductions on mortgages and/or the costs to obtain the mortgage won’t decrease your total bill, but reduces exactly how much of your income is taxed (please always consult with your tax preparers with any tax questions). Therefore, the amount of money spent on your mortgage will still remain much greater than the amount you save. Though decreasing your tax may be useful, don’t use it as a main reason for purchasing a property.
Pre-approval before applying for a mortgage certainly can assist in the home-buying process. However before the deal is complete be sure not to do anything that would compromise your mortgage process, such as switching jobs, changing your financial status, or making large purchases on your credit cards. Unexpected changes can possibly cause your lender to rethink their decision on the loan. In short, pre-approval doesn’t provide a guarantee, keep your financial status stable until the house is yours.
Paying off your mortgage
Debt, as anyone would know, isn’t the best situation to be in. However, being in debt may be the best situation for you to choose from. Understand that having a low mortgage rate might be the cheapest way to borrow money. Also, paying off your entire mortgage may take away a large part of your savings, preventing it from being used on other investments and expenses whether they may be unexpected or planned.