Are there any tax benefits associated with having a mortgage?

There are tax benefits associated with having a mortgage, and the most common tax benefits include:

Mortgage interest deduction: the interest paid on one’s mortgage loan can be deducted from one’s taxable income, which may help reduce one’s overall tax bill

Property tax deduction: property taxes paid on the home can also be duducted from one’s taxable income.

How does my credit score affect my ability to get a mortgage?

Credit score plays a significant role in the ability to get a mortgage loan. Lenders use a person’s credit score to evaluate the risk of lending. A higher score generally indicates lower risk, making it more likely to be approved. Credit score may also influence the interest rate on a mortgage loan. Again, higher scores typically qualify for lower interest rates. For some lenders, credit score may impact the size of the down payment required for the type of mortgage.

Mortgage loans (for the vast majority of buyers) are a necessary part of owning real estate. If you’re thinking of buying, the best first step is to seek a professional that can guide you through the mortgage process and help you understand the next steps for your real estate journey.

Buying a home is a process with a number of moving parts, and navigating that process can be intimidating. As a seasoned real estate professional, I’m happy to help you along your real estate adventure.