It's easier to buy a home than many first-time homebuyers would believe

___

Published Date 6/21/2023

There are a number of myths out there among potential homebuyers.

The first is the misconception that a 20% down payment is required for a home purchase. In reality, many other home loan options may exist. For instance, consumers can get into a home with as little as 3% down. "77% of non-cash, first-time homebuyers in 2018 purchased a property using a down payment of less than 20%," according to a study by the National Association of Realtors.

First time home buyers need to know how important it is to work closely with a mortgage professional because there are options out there for almost every type of homebuyer. It is, however, also incumbent on buyers to prepare and do their research. Homebuyers may be surprised how much money they can keep for emergency savings – instead of putting it toward their down payment – without significantly impacting their monthly mortgage payment.

Another misconception is that the price, closing time, and repairs are fixed. They're not. Nearly everything in a real estate transaction is up for negotiation. Rarely does everything line up perfectly in a listing. The price may be slightly out of reach, the home may be stunning except for the ancient carpet, or a buyer could need more time to wrap up their current living situation before they can move. That's where negotiation comes in, and it's one of the many benefits of working with an experienced real estate agent. An agent can help not only with the price, but also negotiate closing costs and any repairs or updates that need to be made to the property before the sale is final.

A less-than-20% down payment will require private mortgage insurance (PMI) to be added to the monthly payment, but it's important to note the this often can be removed once the debt to income ("DTI") ratio on the loan drops below 80% or as part of a refinance where the new DTI is less than 80%. The exception is with an FHA loan, where the only way to remove the PMI payment is by refinancing to a conventional loan.

Of course, every journey to homeownership is different. But experienced Realtors and mortgage consultants are available to help guide first-timers through the complex real estate process.

Source: TBWS

• < Prev
• Next >

All information furnished has been forwarded to you and is provided by thetbwsgroup only for informational purposes. Forecasting shall be considered as events which may be expected but not guaranteed. Neither the forwarding party and/or company nor thetbwsgroup assume any responsibility to any person who relies on information or forecasting contained in this report and disclaims all liability in respect to decisions or actions, or lack thereof based on any or all of the contents of this report.

Equal Housing Opportunity     

Mortgage Solutions Group, PLLC NMLS #181064  |  Powered By Xpert Home Lending, Inc. NMLS #2179191

States Licensed In:

AL 23249, AR 129623, AZ 1037959, CA DRE 02166758, CA DFPI DBO-1605250, CO 2179191, CN MCL-2179191, DC MLB2179191, DE 039059, FL MLD2250, GA 2179191, ID MBL.2082179191, IL MB.6761726, KS MC.0025868, MD 2179191, MI FL0024365, MI SR0024420, MN MN-MO-2179191, NE 2179191, NC L-211751, NJ 2179191, NM 2179191, OH RM.804928.000, OK ML015396, OR 2179191, PA 103794, SC DCA 2179191, TN 2179191, TX SML 2179191, VA MC-7517, WA CL-2179191, WI 2179191BA, WI 2179191BR, WY  4889

NOTICE TO TEXAS CONSMERS: CONSUMERS WISHING TO FILE A COMPLAINT AGAINST A MORTGAGE BANKER OR A LICENSED MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATOR SHOULD COMPLETE AND SEND A COMPLAINT FORM TO THE TEXAS DEPARTMENT OF SAVINGS AND MORTGAGE LENDING, 2601 NORTH LAMAR, SUITE 201, AUSTIN, TEXAS 78705. COMPLAINT FORMS AND INSTRUCTIONS MAY BE OBTAINED FROM THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV. A TOLL-FREE CONSUMER HOTLINE IS AVAILABLE AT 1-877-276-5550. THE DEPARTMENT MAINTAINS A RECOVERY FUND TO MAKE PAYMENTS OF CERTAIN ACTUAL OUT OF POCKET DAMAGES SUSTAINED BY BORROWERS CAUSED BY ACTS OF LICENSED MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATORS. A WRITTEN APPLICATION FOR REIMBURSEMENT FROM THE RECOVERY FUND MUST BE FILED WITH AND INVESTIGATED BY THE DEPARTMENT PRIOR TO THE PAYMENT OF A CLAIM. FOR MORE INFORMATION ABOUT THE RECOVERY FUND, PLEASE CONSULT THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV.”

Gene Fuessel

Sr Loan Officer/Broker

NMLS: 181064

Mortgage Solutions Group, PLLC

Company NMLS: 2179191

Cell: 512-733-6207

Email: gene@mortgagesolutionsgroup.net

Web: https://www.mortgagesolutionsgroup.net/