Fears vs Facts of Buying a Home
First time homebuyers are faced with many fears. It's important to address these fears before you start you buying process. Here are a few fears that I've encountered with homebuyers and some facts that may help.
FEAR: I can't afford to buy a home.
FACT: I won't know until I do the math.
Sitting down with a great lender for a quick conversation goes a LONG way. Talking about your finances with the lender and available options for you can make a difference. Lenders are not here to judge you and your finances. They are here to help you get in the home of your dreams.
FEAR: I should wait for the market to change.
FACT: There is never a bad time to buy the RIGHT home.
You will always be paying a mortgage whether it's your landlord's or your own. The market is always changing from a buyers market to a sellers market. The interest rates are also ALWAYS changing. You can refinance if the rates drop like they are currently.
FEAR: I don't have the money for a down payment.
FACT: I can find an option that works for me.
GONE are the days where you need 20% down payment for a mortgage. There are programs where you can qualify for 100% financing in certain areas! The average home buyer will put about 3% for a down payment.
FEAR: I should pay off my student loans before purchasing a home.
FACT: Student loans aren't a barrier to homeownership.
As long as you are in good standing with your student loans they do not hinder your ability to qualify for a mortgage loan.
FEAR: I cannot afford to buy a home because of my credit score.
FACT: Poor credit history or no credit history options are available.
Most lenders can give you helpful advise to point you on the right path to improving your credit score in just a few short months. They can tell you what bills should be paid over others to improve your credit score in the fastest time. Their job is to help you qualify for a home and get you to the closing table.
FEAR: Buying a home is too complicated.
FACT: That's why you have a Realtor.
It is our job and PASSION helping people. Realtors are the experts that help you navigate the buying process. Take your time deciding the right Realtor for you. You should know, like, and trust your Realtor. You will be spending a lot of time with your agent and you should not just go with the first agent that bids the highest for your information on a website. Do your research and ask your friends and family for recommendations.
FEAR: I cannot afford my dream home.
FACT: Buying a first home will get you closer to your home.
This is an important one... You buy your "starter" home. Once you can afford your dream home you have options on what to do with your starter home. You can sell your home. Or, if you can afford to hold onto your starter home and purchase a second home you can rent out your starter home. Then, you will have someone else paying your mortgage and get some extra cash. Just know that if you go this route I would suggest speaking to your lender to confirm that you can do this. You should also get an idea on the different costs associated with a renter occupied property (no longer being able to use homestead exemption on the property; change of home owners insurance; Realtor/ property management fees if using a Realtor).
It is completely normal to have fears when buying a home. For most people it is the BIGGEST investment of their lives. If you have other fears that you didn't see that would like to share with me please feel free to contact me. I love helping people and that is why I got in this business. I get to see my clients, friends, and family achieve goals that they have set for themselves and their families.