The best defense against making avoidable mistakes is education. The more you know about something, the less likely you are to screw it up. So you’d think home buyers would want to learn as much as possible before heading out to find a house to purchase. After all, buying a house is major financial transaction and a serious commitment. Yet, surveys of potential home buyers consistently find that large majorities of them share in some common misconceptions about what it takes to buy a house and how the process should unfold.
Recently, Fannie Mae’s Economic & Strategic Research Group interviewed real estate agents, buyers, and loan officers in an effort to figure out why there isn’t more focus on homeownership education before buying. Not surprisingly, most of their answers boiled down to there not being enough time during the process to focus on education. But common misunderstandings about down payment requirements, financing options, and the added costs of homeownership can scare off buyers or lead them to make unwise financial decisions. That’s why it’s always important, as a buyer, to ask questions along the way.
Though you may not have time for hitting the books, you can always lean on the expertise and knowledge of the professionals you hired to guide you along the way.
This article is provided by Jennifer Bixby, the broker for Don Peterson and Associates Real Estate, 100 E. 6th St. Jennifer can be reached at 402-721-9700 for answers to questions regarding real estate.
Homeownership has long been seen as a big part of achieving the American dream. And that hasn’t changed, according to recent data from the National Association of Realtors. An analysis of their Housing Opportunities and Market Experience survey found that 87 percent of non-homeowners said they want to one day own a home of their own and 80 percent of all respondents said homeownership was part of their American dream.
So what are some of the concerns that keep people from pursing their dream of homeownership? Well the number one answer was affordability, followed by people who need the flexibility of renting. But there are also Americans that have postponed buying a home because of misconceptions they have about the buying process and what is required financially. For example, nearly 9 out of 10 survey participants said a down payment of 10 percent or more was required to buy a house which is untrue. In fact, the median down payment for first-time buyers has been 6 percent for the past three years, while repeat buyers put down closer to 14 percent.
Current non-owners may be closer to fulfilling their homeownership dreams than they think. There are lots of mortgage options with smaller down payments available for buyers with good credit and manageable levels of debt. First time buyers should contact a professional Realtor to learn about their options.
This advertisement is provided by Jennifer Bixby, the broker for Don Peterson and Associates Real Estate, 100 E. 6th St. Jennifer can be reached at 402-721-9700 for answers to questions regarding real estate.