Home ownership is a goal for many in our society. We are told over and over again that it is one of the best investments. Realtors will tell you buying is always better than renting. It is something people work hard to get, but unfortunately many people feel like it is unattainable - especially in the market right now. But the good news is that there are several myths about owning a home, that many people take as fact; which may hold them back from buying. On the flip side, others might jump the gun and buy before they are ready. Let's dig into it.
Myth #1: You Need a 3% Down Payment
While having a down payment is standard when buying a home, there are also many programs across the country that offer down payment assistance. Depending on where you live, some programs offer enough to pay for a full down payment. Along with this myth, people assume you have to be a first-time home buyer to qualify. That is simply not the case. Find a good lender near you, and they will be able to help you find solid programs and then get you pre-approved for your home purchase.
Myth #2: Buying is Always Better Than Renting
The reality of this statement is that it is primarily coming from realtors who have vested interest in you buying a home from them. The reality is that buying a home is not the right thing for everyone, and there are other good ways to invest your money. It is widely known that Real Estate goes up in value over time, and it is a very consistent way to build wealth. Timing, however, is the key. Every person has a unique situation, and having a trustworthy realtor who can help you navigate whether it’s a good time to buy or rent is vital.
Myth #3: Home Ownership is Cheaper than Renting
This statement is true in the fact that when you buy a home, often your mortgage will be less expensive than your current rent - and you’ll usually get more space for the money. What is often forgotten is the other expenses you take on when owning a home such as lawn maintenance, general maintenance, the purchase of appliances, the electricity bill in a bigger space, property taxes and HOA fees. Again, every situation is unique so it is important to do your research and talk with experts about what the right decision is for you.
The truth is - many who dream of home ownership think it is way harder than it actually is. It is very obtainable. It is also true that people don’t think of everything and sometimes get into tough situations without proper guidance. Every situation is unique and it is important to do research and get expert guidance from those you trust to figure out what is the best decision for you and your family.