Buying your very first home can be scary, but easy.
Everyone tells you one of the most significant purchases you can make in your life is your own first home. However, you hear what everyone says about the process, and that makes you anxious! The “what if” or “Is it right” questions pop up in your head and it can make you spooked out about the process. So don’t worry! Put away the Xanax or Klonopin and let’s debunk some of the most common fears you might have as a first time homebuyer and some tips.
“I’m afraid I can’t afford a home!” – Some buyers are afraid that they will be draining their savings account. Here is the reality: depending on what and where you are buying a home, most likely you will not be draining your savings account. With today loan programs that are available, they can help first-time home buyers with down payment assistance. The best way to see if you are financially ready to buy a home is by talking to your loan officer. They are trained to help you and see how much you can afford. Alternatively, you can also use our mortgage calculator to get a general idea of how much you will be paying as well.
“I don’t want to buy a home I do not like!” – Some buyers believe that their first home might be a living version of an average house in The Walking Dead – windowless, dreary, and hoping they will not find severed limbs or random body parts lying around or the undead trying to eat you. However, interest rates are so low that homeowners can snag a great deal on a gorgeous home and pay less over the course of the loan. Keep in mind that with the economy being in a downturn, there are lovely properties that are on the market for less than their value.
“I don’t want to buy a money pit that’ll drain me financially!” – The good news is that most houses on the market are not money pits even if they are issues lurking in the shadows. If there are any issues like a leaking pipe in your home, you can do plenty to protect yourself over time. To avoid buying a money pit, hire a good home inspector. They will be able to see any signs of water damage, electrical, and plumbing that could cost you down the road. They will also be able to advise you on potential repair costs, which you can use to leverage to the sellers and lower your purchase price.
“Will I overspend on my house?” – You find a house that you have fallen in love! You already can picture yourself living there, but the asking price is a bit over your budget! Keep in mind that the asking price is what the seller is asking for. What you could buy it for could be a different picture. Your Realtor is trained to guide you to a realistic offer you can make to the seller. A trained agent will know the price points in the areas you are targeting in and can back them up with historical data and comps. You can also search prices of homes that were recently sold in the area so you can gain a better insight before you place an offer to the seller.
“Is it safer to rent than to buy?” – When you are renting, it means you are not trapped in one place as you are with homeownership. The truth is, when you are renting, you are not building equity over time. Now think how scary that is! Not only you are losing out on creating equity, but over time you could be paying around $100 more a month and miss tax deductions for homeowners. So if you want to stay put in an area for a certain time, then it would be financially better for you to buy than rent.
It is not uncommon to hear doubts from anyone who’s getting ready to purchase their very first home. With every doubt and fear comes reality and statistics against the argument or question. Don’t let any of these common myths or sayings stop you from your very first purchase!