The coronavirus pandemic has remade what’s normal, and home buying is no exception. Typically, the real estate market tends to hit the brakes in the fall, as kids return to school and families
Busting Those Common Homebuying Myths
Dreaming of buying your first home? Visualizing your future can feel like a three-bed, two-bath fairy tale, but it need not be just a figment of your imagination. By dispelling a few common homebuying myths, buying the castle of your daydreams can be a reality.
Here’s a handful of tips and tools to help clear away a few of those obstacles and start getting real about your real estate purchase.
Myth No. 1: “I’m too young to worry about buying a house right now; there’s plenty of time”
The fact is, 40 percent of all homebuyers are 34 years old and younger and 65 percent are first-time buyers. Perhaps you’re thinking of getting married, starting a family, or just plain tired of your current home? Regardless of the trigger, the market has been getting more competitive and planning for a purchase now — even if it’s still a couple years away — will help you in the long run.
Take time now to look at your budget and start to explore communities that appeal to your lifestyle. Make sure to think about your hobbies, interests, lifestyle and family needs. When you’ve narrowed down your wish list, give a Realtor a call. They know the market, the trending neighborhoods, and can make every step of the homebuying process easier.
Myth No. 2: “I need to get my finances looking perfect first”
Whether searching for a starter home or a new nest for your family, it is important to be clear on your financial health. Want the good news? 40 percent of all mortgages today are done with less than five percent down.
You do want to start saving aggressively as early as possible. Putting away some extra cash on top of your rental payment each month can also be great practice for the real feel of a monthly mortgage. Consider setting up smaller, weekly automatic bank transfers to make the saving process easier without feeling like your wallet is taking a significant hit.
Use a tool like the realtor.com Home Affordability Calculator to help determine what price range you can afford in the area you would like to buy. Enter details about your income, monthly debt, and down payment to identify homes within your price range. You can also find a lender online who can help you get pre-qualified quickly.
Myth No. 3 “I’m saving money by renting”
It may appear that renting is a lower-cost solution, but is it really? An analysis of median rents in 2017 shows that rents are rising in 78 percent of counties in the U.S. year-over-year.
To truly understand the financial impact of buying vs. renting over time, try using a tool like the realtor.com® rent vs. buy calculator. It’s not simple math, but it’s not magic either.
This at-a-glance interactive graph compares the total amount you would spend on rent versus the total amount you would spend on a mortgage over time.
Finding your perfect home may be closer than you think. Get the facts, dodge the fiction, and keep that new home dream alive! For additional tips, check out our handy first-time homebuyer resource page.
Michelle is a native of Southwest Missouri and has twenty-five years of experience in selling real estate in the greater Springfield area! Michelle specializes in all price points, including new const....
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