February 11, 2019
Venturing into the home owner arena for the first time can be nerve wrecking. It can also be the soundest financial decision you will make. Real estate is a good investment for any number of reasons and not all of them are simply financial considerations.
Studies have shown that a person who owns a home versus one who is renting a place experiences a sense of stability and satisfaction that leads to other beneficial advantages. Increased overall mental, emotional and physical health is one noted side effect of home ownership. A greater sense of community and connectivity is another.
Finances however, are usually the biggest hurdle someone needs to overcome in order to make that dream of ownership happen.
Down payment concerns top the list of obstacles blocking the path for most first time would be home buyers. While those who sell one home to purchase the next have the funds needed to pay for the cost involved in buying again, should a first time home buyer wait until they can put down a full 20% of a purchase price before entering the market?
With the many options available, a first time buyer may want to explore lender offerings before giving up on the idea of owning.
- VA eligibility means you can own with 0 down payment and excellent terms. If you are active duty military or a veteran this option can open up the marketplace to you.
- There are lenders with special financing including 0 down for those making a first time purchase
- FHA loans usually require no more than 3% down payment
The benefits of the fixed rate mortgage give the certainty and stability of knowing what payments to budget for long-term, unlike rent payments which are expected to continue rising. Not to mention the fact that you are paying a mortgage; just not your own!
While it is good financial practice to take into consideration the costs associated with home ownership, give weight to the built in savings of ownership as well. Each year that passes you are not only paying down your mortgage. The investment you made in ownership is paying you in the form of equity, that increase of value to the property you’ve purchased. With mortgage rates and home prices moving in an upward direction, each year you put off investing could actually be costing you money.
Your local marketing specialist is in a unique position to help you determine your best course of action as you move toward owning your home and investing in your secure financial future.