SCARY thoughts about buying a home
Buying a home is arguably one of the biggest purchases you will make in your life, so whether its your first or you’ve done this a time or two, it can be really scary! Not only knowing, but understanding the facts is the best way to beat this fear, and working with trusted local real estate agents is the best way to accomplish that! Enter: long-time locals at Key to the Rockies Real Estate, ready to help ease your fright!
You start thinking, “I think I’m ready to buy a home,” and the next several thoughts are likely a spiral of self doubt. “I need a 20% down payment.” “My credit score isn’t good enough.” “Getting approved for a mortgage is so hard.” “It’s cheaper to rent and not hassle with repairs.” “I don’t have enough equity in my home to move yet.”
This is totally natural, and honestly, you’re working through all of the right thoughts. The issue is, it doesn’t have to be so harrowing! Let’s look at some facts that directly debunk some of these common fears….
- 40% of first time home buyers put down under 10%
Of course, the more you put down, the lower your interest rate. BUT, if you want to get into a house now and start building equity, it may be better to buy with a smaller down payment! There are pros and cons to every situation of course, and we’re here to talk you through every option.
- The average credit score on approved loans is 724
A conventional mortgage usually requires a minimum credit score of 620. This means that with a score of 724, you have a high probability of being approved for a mortgage loan. To get some of the best interest rates out there, you’ll want to aim for a score around 760.
- Buying a home is 36% less expensive than renting in the US
In fact, a report from January this year states that owning a median-priced home is more affordable than the average rent on a three-bedroom property in 58% of the U.S.!
- 45% of homeowners in the US are considered equity-rich
Homeowners continue to benefit from rising home prices. Record levels of home equity provide financial security for millions of families, and minimize the chance of another housing market crash like the one we saw in 2008. Unfortunately, higher home prices and rising interest rates make it extremely challenging for first time buyers to enter the market, but we are here to help!
We love spooky season, but real estate doesn’t have to be scary! Did we miss any of your frightening thoughts surrounding buying a home? Don’t hesitate to reach out if you are considering a change in your current real estate.
