Four Ways Buying a Home Will Change your Financial Life.

From short-term financial stability to long-term generational wealth, homeownership is the number one way to reach your economic goals.

Buying a home is a major financial commitment that requires careful planning and preparation. But more than any other investment you make in your life, homeownership can improve your quality of life and build financial security for your family that can last generations. In honor of National Homeownership Month this June, here are four ways buying a home will transform your family’s life, future, and financial trajectory.

1. The homebuying process helps you create a financial roadmap for the future.

Investing in a home ensures predictable, stable housing costs and yields tax benefits, but there’s no doubt it can be an intimidating process to begin. Homebuyer education and counseling puts you in control of your financial future.

Homebuyers who attend homebuyer education classes and counseling at HomeSight usually come in with general knowledge of the benefits and expenses of homeownership. In homebuyer education classes, homebuyers learn everything there is to know about mortgages, closing costs, home’s maintenance, repairs, property taxes, and more. In financial counseling, homebuyers then learn how to create a financial roadmap to meet these requirements and start gaining true financial stability.

This information can seem like a lot at first, but homeownership counselors are trained to help homebuyers do a deep dive into their budgets, and create a personalized financial plan that works for your family. You’ll come away from the experience with a deeper knowledge of homebuying requirements, realistic goals, and an understanding of how homeownership can lead to manageable expenses and a stable financial future.

2. You’ll build equity in your home. Home equity is the difference between what your home is worth and what you owe on your mortgage. As you pay off your mortgage over time, your equity will increase. When you’re renting, you’re paying for your immediate living expenses, and you’ll never see that money again. With a mortgage, you’re paying for living expenses, and most of that money remains yours.

3. You’ll have options in the future. As you build it, you can use your equity to borrow money for home improvements, education, debt consolidation, or other purposes. You can also sell your home and use the proceeds to buy another one or to fund your retirement.

4. You’ll build generational wealth. For most Americans, a home is a family's largest asset. Property can be directly inherited by the next generation, providing heirs with a significant asset that offers financial security, reduces their housing costs, potentially frees up funds for education or other investments, or can be sold for profit.

If you’re considering taking the first step down the path to homeownership, remember you don’t have to take this journey alone. Consult with trusted community professionals and organizations that are committed to helping you along the way.

Organizations that are members of the Black Home Initiative (BHI) are great places to start. These organizations are committed to BHI’s shared priority of creating 1,500 new Black homeowners in the Seattle region over the next five years. With their support, you could be one of them.