It's worth digging deeper to get the facts

It’s Worth Digging Deeper to Get the Facts

For one reason or another, there are hundreds of thousands of people who believe that they cannot afford to buy a home right now. For whatever reason, some of these people may not be ready to buy. It would be very surprising to know that of the people who can buy now, how many got bad information along the way. It’s worth digging a little deeper to get the facts.

Here we have Karen and John who have been renting a home for the last five years paying $2,000 a month. During those last five years, the value of the home increased by $30,000 and the unpaid loan balance decreased by $18,400. They were fortunate that their rent remained constant at $2,000 over the five years but they missed out on almost $50,000 of equity that their landlord realized instead of them.

With today’s low-interest rates, here is another thing to consider. It is quite common for a mortgage loan payment to be lower than the rent a tenant is paying for the same property type. In my example, Karen and John paid more to rent a home for five years then the house payment would have been and missed out on the equity build-up due to appreciation and amortization.

The fact is that when tenants like Karen and John pay their rent, their landlord is the only beneficiary in both rents received, and equity earned. Over time, rent payments will pay for the landlord’s rental property. It is a good investment and a great concept.

We know that not everyone can afford a home. Buyers need money for down payments and closing costs. Buyers need income and must have good credit to qualify for a mortgage. Although these may seem impossible and that buying a home now is not in the cards for you, talk with me instead of better routes to take.

There are lots of low-down-payment mortgages available including 100% financing for qualified veterans and USDA eligible buyers.  It is sometimes more difficult to find sellers willing to pay all or part of a buyer’s closing costs when inventory is low, but lenders do allow it.  It is a matter of finding a willing seller.

Down payment sources can be a gift from a family member without any repayment stipulation. Grandparents and parents are often very willing to help a relative get into a home. If you have a qualified retirement program like an IRA or 401K plan, funds may be available for withdrawal. It is worth investigating.

You need good credit to buy a home, but don’t just assume yours is no good. I can set you up with a trusted mortgage professional who can assess your situation and suggest some things to not only raise your credit score for approval but also help raise it enough to get a better interest rate.

Today, there are a lot of misunderstandings about qualifying for a home loan. Instead of relying on the Internet or secondhand information, contact me so I can give you some facts, assess where you’re at, and hook you up with a trusted mortgage professional. Call (703) 303-4010 to schedule an appointment where we can dig deeper to determine if you can buy a home right now.

Download our Buyers Guide to give you more information.

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