Here are some of the most common homebuying hurdles and advice on how to jump over them!
“I can’t afford to buy a home.”
When you first consider buying a home, it can seem financially overwhelming. (After all, it’s not every day you buy something worth hundreds of thousands of dollars!) Luckily, lenders are aware of the financial toll a home can take and they are determined to help you find a home loan type that will fit your budget.
It’s true that the “golden standard” in homebuying used to be saving 20% of the purchase price, but that doesn’t mean you can’t get a mortgage with less. There are plenty of programs perfect for first-time homebuyers that require much less than that. Some even require as little as 3.5% down! (And if you’re active military personnel or a veteran, you could benefit from a zero-down VA loan!)
“I have too much debt to buy a home.”
While having debt can seem like an instant hurdle when buying a home, it isn’t always the case. In fact, lenders even consider certain types of debt to be “good” debt! When lenders look at your debt, they are less concerned with the amount of debt you have and more interested in how well you can manage it. It all boils down to your DTI, aka your debt-to-income ratio. Lenders will use this percentage to measure how well you manage your monthly debts and whether you can comfortably afford a monthly mortgage payment.
“I like being able to move whenever I want.”
To many, the idea of buying a home seems too permanent. However, if you plan on staying where you are for more than five years, buying a home is definitely something to consider. You don’t have to live in your first home forever – and according to statistics, you likely won’t. If life ever throws you a curveball, the option to sell is always on the table. In fact, if you ever need to move on short notice, the flexibility of selling may even be easier than getting out of your lease!
“I don’t even know where to begin!”
We’ve all daydreamed while browsing homes online, but how do you actually start the process? Buying a home is a huge life (and financial) decision and it’s understandable that it would seem overwhelming. Fortunately, there are endless resources out there that can help you become more confident in the homebuying process. (Like this blog, for example! 😉)
