Homebuying Reality Checks

Has the thought ever crossed your mind that YOU buying a home just wouldn’t ever happen or be possible in the slightest? Well, you’re not alone. Almost everyone thinks that at some point or another in their life. There are commonly held myths about homebuying that could possibly be debunked depending on your situation. Read on to find out whether buying a home could be YOUR reality. 

Amassing a Downpayment 

The fear and anxiety surrounding the need to save up a 20% down payment in liquid cash keeps a lot of people from even entering the market in the first place. When the median list price of a home is at $450,000, how realistic is it, really, to have $90,000 lying around? Luckily, 20% isn’t necessarily the standard. Look for loans backed by the FHA or VA (if you qualify) as these loans generally seek 3-5%, or even zero down. 

Affording a Mortgage 

Ask anyone and the first quip about buying a home is, “Oh, I could never afford a mortgage.” Well, due to current inflation rates, average rents across the US are actually outpacing average monthly mortgage payments. When paying rent to a landlord, you’re covering their insurance, taxes, and maintenance fees. When you are paying that same amount (or even less!) on your own mortgage, you’re building equity in yourself. 

Low- or no- Credit 

Your credit score has a large effect on your quoted interest rate and the faith lenders have in your ability to repay. Simply having a lower credit score (or no score at all) doesn’t put the dream of homeownership out of reach, it just means you may need to do a little more legwork. Working with a licensed loan officer can actually create a credit improvement plan for repaying debts, and keeping your balances and inquiries low. 

If homeownership is your goal, don’t let rumors stall you out. Chat with a licensed agent today to have your fears assuaged and your dreams realized!