Everyone tells you one of the most major purchases you can make in your life time is your own 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 on your home purchase.
“I’m afraid I can’t afford a home!” – Some buyers are afraid they are stuck in a black hole of major debt and their savings account will be drained where they couldn’t afford vacations and nice things and their food diet will be your typical ramen noodles you ate during college. 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 offered to us, they could help first time home buyers with down payment assistance or some programs don’t require your arm, leg, and your first born in order to obtain a mortgage. The best way to see if you are financially ready to buy a home yet is by talking to your loan officer. They are trained to help you and see how much you can afford. Or you can also use our mortgage calculator to get a general idea of how much you will be paying or be able to afford.
“I change my mind more than I change my socks! I don’t want to buy a home I don’t like!” – Some buyers believe that their first home might be a living version of an average house in The Walking Dead – windowless, dreary, exposed piping, and hoping they won’t 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 like The Simpsons’ house and pay less over the course of the loan. Keep in mind that with the economy being in a downturn, there are wonderful properties that are being sold for less than their value.
“I’m afraid the house I want to buy will cost me more money down the line!” – 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. In order 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 red flags 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 for the sellers and lower your purchase price.
“What if I overspend on my house?” – You find a house that you have fallen in love with! You already can picture yourself cooking dinner in the kitchen, spending time with your family in the family room and waking up to your amazing master bedroom suite! But wait… the asking price is a bit over your budget! Keep in mind, 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?” – 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 on building equity, but over time you could be paying around $100 more a month and miss tax deductions for home owners. If you can picture yourself in an area over time, then it is worth buying.
Have any more doubts or fears? Call us at 973-577-7008 and let our team help put your fears to rest.