What's Stopping You from Buying a Home???

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Real Estate

By now, you’ve heard about all the benefits of owning real estate, from the money you can save vs. renting, to the long-term wealth-building benefits, to the tax savings and more.  However, there is still something that is holding you back from making that first move!  As realtors, we often see people run into the same roadblocks when it comes to purchasing their first property.  Below are 3 common roadblocks, as well as some tips to get past them.

1-Financial Issues -- No Judgements, everyone has them.

The most common roadblock to buying property is not having enough money.  Or, more accurately, feeling like you don’t have enough money.  Many people feel like buying a home is a huge expense that they will never be able to afford.  The truth of the matter is that there are many programs out there designed to help you buy a home without needing to put as much money down as in years past, especially if you are a first-time home buyer.  You are most likely closer to purchasing a property than you think!  All you have to do is try.

Employed ✔️          FICO Credit Scores ✔️          Debt-to-Income Ratio ✔️          Down Payment ✔️

If financial issues are something that is stopping you, feel free to reach out to us through our website, phone or text and we’ll be happy to put you in touch with the right people that will let you know what “homework” you need to do financially in order to qualify, if you don’t qualify already!  We’ll make it as easy as possible!

2-Nervous About the 2021 Real Estate Market

The next roadblock we have been hearing about, especially lately, is that buyers are nervous that the real estate market is going to crash.  They think that they should hold off buying property for a while so they can wait and see what happens with the market.  This thinking is faulty for a few reasons.

First, there isn’t going to be a market crash like there was in ’08 and ’09.  Let me explain why…

That “crash” was caused by the banks being “loose” in the qualifying process — handing out loans to just about everybody.  If you had a pulse, you could get a home loan back then.  After the crash, the Federal Reserve stepped in and all Lenders had to tightened up loan requirements.  Borrowers were scrutinized more closely for their credit strengths and ability to pay the loan.  And these changes have made a BIG difference.  Today, lenders are still as strict when qualifying people for a loan, so we shouldn’t see a repeat of  those problems.

Also … you may remember, back then people were pulling their equity from their homes to pay for vacations and consolidate debt from overspending, so they didn’t have the money to save the house when the trouble began.  These mistakes haven’t happened this time.  Most homeowners have built up enough equity in their homes due to the strong rising economy prior to COVID to ride-out economic highs and lows. 

Next, let’s say that home prices do fall a little, which is a possibility.  If that happens, then “that” would make it the perfect time to buy!  After all, the goal is to get a property for a good price, right?  If prices do drop, that means it will be easier for you to find a good deal!  There are many millionaires that made their money buying real estate during a down market because the prices were so good.  So, if you start getting your affairs in order, do your financial “homework” as it was, you’ll be ready-to-go when deals start coming on the market!

Losing Buying Power -- If prices continue to rise as they have -- the house you can afford this year for (example) $500,000; will cost you $550.000 next year,  Are you expecting your income to go up $50K next year?  So maybe ... you're better off buying now, then waiting until you can no longer afford anything.

3-Scared to Take the Leap

Sometimes, the biggest roadblocks is just the fear of owning real estate in general.  What if something goes wrong?  What if I buy the home and the roof collapses, or the sewer backs-up?  What if I pay too much for a property?

This can be tough to overcome, as we have had to go through the fear ourselves when we bought our first house.  We kept telling ourselves that maybe if we just waited, or did more research, we would be better off.  Well, we are here to tell you that, just like with other things in life, you just gotta take that leap.  There are so many variables in real estate, that you can never be fully prepared, not without experience.  So, use our experience and make buying a home your goal.  We are here to help you every step of the way.

Home Inspectors ✔️          Appraisers ✔️          Home Warranty ✔️          Title Insurance ✔️

The best way to be prepared is to get yourself a good team of professionals to help guide you through the process.  As realtors that work with lots of new buyers, we understand this is new to you and we answer all questions.  We will explain things, like if you decide “this” than “this” will happen and if you choose “that” then “that” will happen.   Having a good realtor, and a good lender at your side will be more than enough to make sure that your real estate purchase turns out great.

As always, please feel free to reach out to us with any questions.  Call or text with questions 310 357-1454.  Thanks, and have a great day!