If you've been renting because you think you can't afford a home, think again! We've got great news for you... being a first time home owner is a goal that you can easily achieve and we'd like to help!
When it comes to the decision of renting vs. buying there are a lot of myths out there that quickly discourage potential buyers, forcing them into another lease, another month to month obligation and another payment towards someone else's expenses, which leaves us asking, "Why spend your income paying off someone else's mortgage when you could be making a payment toward your very own home?"
So, with that question in mind, we're going to show you the truth about some of those discouraging myths that may be holding you back!
MYTH #1. Only people who make a lot of money can afford to buy a home.
FACT: If you make more than roughly $25,000 per year (single or combined income) then you can likely afford and qualify for a home loan as long as your debt to income ratio is in the right range. This means even if you don't make "a lot" of money, if you have little to no other debt, there are loans available out there specifically for your situation.
MYTH #2. I don't have a perfect credit score, so I'll never qualify for a mortgage.
FACT: The FHA minimum credit score for subprime mortgages is 580, proving that although you may be hit with higher interest rates, you can still qualify for a loan that's not solely dependent on your credit.
MYTH #3. If I do qualify for a loan with poor credit, I'll be stuck with those higher interest rates for 30 years or more.
FACT: You can always refinance or modify your rates and you should, when available, in order to lower your monthly payments!
MYTH #4. I'm single and most single people don't own homes by themselves.
FACT: Recent studies have shown that almost 60% of first time home-buyers are unmarried! Regardless of your relationship status, owning a home provides you with the foundation to invest in yourself more or to contribute a major asset into your future partnership!
MYTH #5. Homes are just too expensive right now.
FACT: In most areas, the average home is below $200,000. It is still a buyer's market and there are homes available in all different price ranges that could work for you, including foreclosures.
MYTH #6. I'm too old to buy a house now. I've been renting forever and owning a home doesn't seem like a reality at my age.
FACT: The average first-time home buyer is roughly 32 years old and on average, those buyers also rented for nearly 6 years before actually buying.
MYTH #7. It's impossible to save enough for a 20% down payment on my income.
FACT: You don't necessarily need a 20% down payment and some situations don't require a down payment at all! Some loans, such as FHA and USDA loans can require as little as 3.5% down and although you may be restricted to certain areas, some loans require NO down payment!
MYTH #8. It's just cheaper to rent.
FACT: Depending on where you live, a monthly mortgage payment can actually be less than the rent you pay. Seriously, there are affordable options for you, we promise!
MYTH #9. Owning a home used to be a good investment, but I've heard it's not such a great investment these days.
FACT: While investing in property is perhaps one of the BEST things you can put your money into, it's also an investment for future generations. A home typically lasts through more than just one generation, so even if you're young and don't have a family yet, investing in a home could be a great way to contribute to your future goals and plans, by buying now and building up your home's value for the future!
Wilmington is growing rapidly and has always been a destination location for retirees, college students and those who just relocate to the beach for work or pleasure. With a constant need for more housing, apartments are being built, rental properties are thriving and now, more than ever, is a great time to start searching for a home of your own, rather than paying into someone else's future. If you're unhappy renting and you want to invest in yourself, let us help you reach your goals of home ownership! Now is a great time to own a home in Wilmington and if you're unsure of whether or not you can afford it, we can help you get there!