Owning a home is the American dream, but it’s also the largest investment most of us will ever make! That’s why Midge & Co put together our 2017 first time buyers guide. We want you going into buying a home knowing what is and isn’t required, this buyers guide is just what you need.
If you are currently renting now there is no better time to buy than now and here are 3 great reasons to buy a home this spring:
- Prices will continue to rise
Over the last 12 months the latest home price index reports that home prices have appreciated by 7.2% and they also predict that they will continue to increase at a rate of 4.7% this year. The bottom in home prices has come and gone, waiting to buy just doesn’t make sense any more.
- Projected mortgage rate increases in 2017
An increase mortgage rate will impact your monthly mortgage payment. Experts are predicting that mortgage rates will rise from the average 4% over the next year.
- Renting or buying,either way you’re paying a mortgage
Unless you are living somewhere rent-free renters need to realize that they are in fact paying a mortgage, their landlords. When you own a home mortgage payments are considered “forced-savings” because as you pay on your home you are building equity that you can tap into later in life.
Midge & co understands that there are some renters who have not yet purchased a home because they are uncomfortable with the obligation of a mortgage. We are also well aware of two other major myths that may be holding you back from buying.
- You need a 20% down payment to buy a home
A survey by Fannie Mae revealed that 76% potential home buyers overestimated or didn’t know the down payment required to qualify for a home loan. While most believe that you must have at least 20% down to buy a home there are many programs that let buys put down as little as 3%.
- My credit score isn’t high enough
It is commonly thought that a “good” credit score is 780 or higher is required to buy a home, but a survey revealed 59% of Americans either didn’t know or were misinformed about what FICO score is required to qualify. Your dream home may already be within your reach as 54.7% of approved mortgages had a credit score of 600-749.
Pre-approval, your first step
We recommend you have your financing in place before you look because houses are bought and sold overnight. You could lose your dream property while you are waiting to secure the financing. Knowing your budget will also give you the confidence to know if your dream home is within your reach. One of the many advantages of working with Midge & co is that we have built many relationships with lenders who will be able to help you out with this process. View our recommend lenders to get started.
Know what you want vs. what you need
If you’ve been thinking about buying a home of your own you’ve probably come up with a giant list of things that you’re dreaming of having in your new home. What we suggest doing next is taking that list and breaking it into “must-haves” and “should-haves”. Must-have items would mean that if the house doesn’t have it then it shouldn’t even be considered where should-haves will not be a deal breaker. Having this list organized before you begin searching for your new home will save you time and frustration.It will also help your agent know features are most important to you before they start showing you homes in your desired area. If you have questions this buyers guide didn’t cover please contact us, we are happy to answer any questions you may have!
Before you sign another lease, contact Midge & co we’ll and discuss all your options.