| Can you believe that buying a home is a big financial | | | | Still yet, others did not consider that the pre-approval |
| decision? Can you guess why? Did you know that the | | | | they received did not account for their utilities, grocery |
| purchase of a home can affect your federal income | | | | bill, clothing, entertainment, etc. as a result the purchase |
| taxes? How you ask? Let's examine. | | | | of their new home became financially overwhelming |
| In recent years, many mortgage brokers have | | | | very quickly. The reason for this is the pre-qualification |
| convinced buyers to commit to large loans with large | | | | only evaluates bills and credit that is reported to the |
| interest rates. The mortgage brokers, however, did not | | | | credit bureau. It does not reflect all of the expenses |
| discuss the financial burden and/or the federal income | | | | necessary to operate a home like the utilities, grocery |
| tax consequences. | | | | bill, entertainment, etc. |
| Misconception about Mortgages | | | | Consider an Accountant Before Buying Your Home |
| Some buyers came to the mortgage broker asking for | | | | If you are concerning purchasing a house contact your |
| or under the misconception that having a higher | | | | financial adviser or accountant, then the mortgage |
| mortgage interest rate would give them higher write | | | | broker, then the Realtor to avoid most of the financial |
| offs on their federal income taxes. However, many of | | | | mistakes that are plaguing the market right now. If you |
| those same buyers discovered at tax time that due to | | | | already own your home consider contacting a financial |
| alternative minimum taxes the write offs were not | | | | adviser or accountant before refinancing your home, |
| what they expect and they did not reduce their federal | | | | as well. |
| income taxes at all. | | | | |