Some couples want to be settled into a home prior to the birth of their first baby, but in some ways, it can be a good idea to wait. If you are planning to have children, you can net a good deal if you wait until after the birth of your first baby to obtain a mortgage loan. Here are some reasons why you should have your first kid, then look for your forever home.
Tax burden lowered
Financing a home is based on your take home pay and your overall debt load. Prior to having a baby, many couples save up cash, which can help for paying off debt or for a home down payment as well. When you have a child, you can receive a child tax credit. You also have yet another dependant, which leads to a lower tax burden. If you want your take home pay to look its best to get a higher loan, after your first baby and first tax season with child, you will be at your best. Talk to your real estate agent or mortgage broker to determine how your approvals will look with a dependent.
More careful selection of school districts
One of the things that you want to make sure is that your child has access to a good education. Where your neighborhood is zoned will determine which public schools your child will go to. If you purchase several years before you even think about having children, the ratings of the nearby schools could take a dip. If you are buying when your child is born, or approaching their first birthday, you can buy in a consistently well-performing district and get your money's worth in a home.
Allow the city to change
Cities and neighborhoods change. If the city is undergoing gentrification in any areas or if a lot of transplants are coming due to businesses that are opening, the landscape of the city and the neighborhoods could change drastically. You want to make sure you get financing on a home that will still be worth it when you are raising your family there. For this reason, waiting until you have a child gives you time to watch the city grow and change. This also means that you get to make sure that your mortgage and your home turn into an appreciating asset, rather than a depreciating asset.
For more information, contact local professionals like The Toby Team.Share