Three STUPIDEST Things To Do When Buying Your First Home!
Have you ever heard of a false prophet? … Well in real estate there are many nonsensical fallacies that are spewed around. Here are the three dumbest things that I hear about buying a home in 2023.
1. Waiting to save up 20% DOWN
In the U.S we are blessed to have many lower down payment options for home buyers. Going down to 0% on VA & USDA applicants, 3% for conventional, and 3.5% for FHA borrowers.
Many buyers who claim they will “save up 20%” unfortunately never get to that point. 20% of a median priced home in Atlanta is $72,000. Many will feel the wealth effect well before they get to 20%, spend the money on many other things and end up renting for the foreseeable future.
2. STICK TO A BUDGET
Many buyers go way beyond their means when buying their first home. You need to speak with a loan officer, figure out what you can afford, and find a budget that you are comfortable with. Remember this is not just what you are comfortable with on a monthly payment basis. The higher the price point, the higher the minimum down payment, closing costs, taxes, insurance, etc. When you find this comfortable price point range-STICK TO IT!
If you must renovate some items down the road or on the weekend, it is better than going well above your means to have a nicer backsplash. Trust me, I see many get themselves into way more house than they can afford to upkeep.
3. Waiting to buy until you can afford your DREAM HOME!
Many buyers fall into the trap that you should wait until your dream home is attainable. There are many issues with this idea. You miss out on years & years of appreciation and mortgage pay-down. People also forget that you will have to live somewhere while you “wait”, which usually means you will waste money on rent in the meantime. Also, your expectations of a dream home now will completely be different in 5-10 years. Your needs will change, family size will probably change, your wants will change…you get the point.
The biggest wealth tool in this country is real estate. Not many other investments, if any, can you gain 100k in sweat equity within a couple of months of work. Is it easy? NO– but building wealth usually isn’t a walk in the park or everyone would be rich. Don’t wait for years and years just to look back and realize that all you did was waste decades of compounding growth.
#realestate #mortgage #homebuyers #work #investments #atlantarealestate
Posted by Carson Hulak on
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