Help Entering The Home Buying Market

February 27th, 2024

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Many homebuyers need help entering the home buying market. They cite obstacles and problems that create fear in moving forward with buying a home. This is especially true of first time homebuyers. But with some research and patience, there are answers for a lot of these questions. And there are many ways to overcome fears of home buying.

See the list below of some of the most common fears, and answers to those fears.

I Am Waiting For Mortgage Rates To Fall

History shows rates are not that bad currently. If you are waiting for 3% to 4% mortgage rates, you may wait your whole life and never see those rates again. For proof, you can watch this video to see details on historical rates going back hundreds and even thousands of years!

Rates are volatile and fluctuate. You can buy now and refinance later. A mortgage is always a win-win. If rates drop, you can refinance. If rates go up, the higher they go the better you’ll feel about the mortgage rate you got.

I Am Waiting For Real Estate Prices To Fall

This may also be a very long wait. There is way more demand than supply and that is propping up and increasing prices. People are sitting on homes they’d otherwise sell because they have very low interest rates. So inventory will remain low for quite a while. For more on this phenomenon read this article.

I Need To Save For A Down Payment

There are alternatives to waiting to save for a down payment. Saving can take many, many years, which means losing out on appreciation. When you are ready to buy the $500,000 home you loved from 3 years ago after saving a down payment, it may be much more expensive. You can:

  • Get gift money from family if available.
  • Consider a low down payment option as low as 3% down and 5% down. PMI is not permanent and can be removed at some point in the future.
  • You may be eligible for a grant program.

I Am Uncertain Where To Live

Talk to a seasoned, local realtor. They’ll help educate you as to what areas might fit your lifestyle. Also talk to friends and family. Those that know you best may have good insights on where you’d be happy being a homeowner.

Uncertainty Over Buying A Home

Get pre-approved for a mortgage first. Look over  your options, payments, and closing costs. The best thing to do to overcome uncertainty is to get educated. Getting pre-approved for a mortgage does not cost anything, except some of your time. Read more here: STEM, and learn about my Sales Through Education Method.

Available Homes Are Not Desirable

That may be the case. But you can also paint, renovate, landscape, and change a home to suit you. And yes, that type of work costs money. I have done this myself several times. Renovations can be slowly, over time. Do them as you can afford them. Some renovations you can do yourself. And some renovations will be inexpensive, like paint, refinishing cabinets, and landscaping.

I Want To Avoid Debt

I want to avoid debt too. However, rent is debt. And rent is debt that offers no return. At least mortgage debt will ultimately yield a return.

Conclusion

Do you or someone you know have doubts about buying a home? Contact me to discuss loan programs, your qualifications, mortgage rates, and other home buying and mortgage questions. Click here to schedule a call, or you can email me directly.

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Brian Martucci is a loan officer for Capital Bank Home Loans, a division of Capital Bank, N.A. He has been in the mortgage industry since 1986 and has served in a number of roles, including loan processor, loan officer, mortgage broker, branch manager, and vice president. Brian Martucci – NMLS# 185421. His opinions do not necessarily reflect the opinions and beliefs of Capital Bank Home Loans or Capital Bank. Capital Bank, N.A.- NMLS# 401599. Click here for the Capital Bank, N.A. “Privacy Policy”.

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