01/04/2022
A recent survey shows some homebuyers ages 25 to 40 may be unsure about the homebuying process and what they can afford. It found:
👉🏻 1 in 4 underestimated their buying potential by $150k or more
👉🏻 1 in 4 underestimated the increase in value by $100k or more
👉🏻 47% don’t know what a good interest rate is
If you’re interested in buying but aren’t sure where to begin, here are three key concepts about homeownership you should understand before you get started.
🔑What You Need To Know About Down Payments
👉🏻Saving for a down payment is sometimes viewed as one of the biggest obstacles for homebuyers, but that doesn’t have to be the case. As Freddie Mac says, “The most damaging down payment myth—since it stops the homebuying process before it can start—is the belief that 20% is necessary.”
🔑You May Be Able To Afford More Home Than You Think
👉🏻As an article recently published by NAR points out, “Many young adults are underestimating how much they need for homeownership, the survey finds. Millennials underestimated how much home they can afford right now, how much interest they would pay over a 30-year mortgage, and how much home values appreciate, on average, over 10 years...”
🔑Homeownership Will Become Less Affordable the Longer You Wait
👉🏻Finally, with mortgage rates starting to rise along with home prices appreciating, putting off buying a home now could cost you much more later. Most experts forecast interest rates will rise in the months ahead, and even the smallest increase can influence your buying power.
DM me today so we can talk more about the process, what you’ll need to start your search, and what to expect.
