Home Buyers

93% Believe Homeownership Is Important in Attaining the American Dream

Americans continue to believe that homeownership is important in achieving the American Dream. A recent survey by NeighborWorks America reported that:

“Owning a home remains a core element of the American Dream.”

When asked “How important a part of the American dream is owning a home?”

  • 18% of those surveyed said it was the most important part
  • 53% of those surveyed said it was very important
  • 22% of those surveyed said it was somewhat important

Homeownership and Financial Stability

The survey also revealed that 81% of Americans believe that owning a home leads to a family being more financially stable. This feeling was reiterated by Zillow Senior Economist Aaron Terrazas who, in a recent press release, explained:

“After about a two-year slowdown, rent growth is starting to pick back up across the nation…Looking into 2018, rent is expected to continue gaining.

More widespread rent growth could mean home buying demands stay high, as renters who can afford it move away from the unpredictability of rising rents toward the relative stability of a monthly mortgage payment instead.” (emphasis added)

Bottom Line

Owning a home always has been, and always will be, a crucial part of attaining the American Dream.

You Don't Need 20% Down To Buy A Home!

No… You Do Not Need 20% Down to Buy NOW!

No... You Do Not Need 20% Down to Buy NOW! | MyKCM

The Aspiring Home Buyers Profile from the National Association of Realtors (NAR) found that the American public is still somewhat confused about what is required to qualify for a home mortgage loan in today’s housing market. The results of the survey show that non-homeowners cite the main reason for not currently owning a home, as not being able to afford one.

This brings us to two major misconceptions that we want to address today.

1. Down Payment

NAR’s survey revealed that consumers overestimate the down payment funds needed to qualify for a home loan. According to the report, 39% of non-homeowners say they believe they need more than 20% for a down payment on a home purchase. In actuality, there are many loans written with a down payment of 3% or less.

Many renters may actually be able to enter the housing market sooner than they ever imagined with new programs that have emerged allowing less cash out of pocket.

2. FICO® Scores

An Ipson survey revealed that 62% of respondents believe they need excellent credit to buy a home, with 43% thinking a “good credit score” is over 780. In actuality, the average FICO® scores of approved conventional and FHA mortgages are much lower.

The average conventional loan closed in August had a credit score of 752, while FHA mortgages closed with a score of 683. The average across all loans closed in August was 724. The chart below shows the distribution of FICO® Scores for all loans approved in August.

Bottom Line

If you are a prospective buyer who is ‘ready’ and ‘willing’ to act now, but are not sure if you are ‘able’ to, let’s sit down to help you understand your true options.

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SOLVING THE HOME BUYING PUZZLE DOESN'T HAVE TO PUZZLE YOU!

Think about it, you start off with a great sense of anticipation and excitement about the task before you. You devise a strategic plan and take the first steps toward your ultimate goal. But as time goes on, doubt begins to creep in. You swear you’ve tried to fit every possible piece into a certain part of the puzzle. You haven’t made nearly as much progress as you’d thought and the idea of achieving your goal starts to feel overwhelming and unattainable. You may even question why you decided to do this in the first place!

The good news is that buying a home doesn’t have to be this way, and that’s where we come in!

While buying a home is a big commitment that will undoubtedly cause some degree of stress and anxiety, having the right people working with you to minimize those negative feelings can make all the difference in the world. Solving a puzzle is much easier when you have the finished picture to refer to on the cover of the box. Think of us as that cover and the key to solving the home buying puzzle. Without it, it’s much harder to figure out which pieces go where and how everything ultimately fits into the final product.

 

To help you solve the home buying puzzle, a Buyer’s Real Estate Agent will help you with all the pieces of the puzzle of purchasing a new home:

  1. Educate you about your market.
  2. Analyze your wants,needs and desires.
  3. Guide you to homes that fit your criteria.
  4. Coordinate the work of other needed professionals.
  5. Negotiate on your behalf.
  6. Checks and double-check paperwork and deadlines.
  7. Solve any problems that may arise.
  8. Hand you the keys to your new home!

TAKE THE FIRST STEP TO BUYING THE HOME OF YOUR DREAMS AND GET OUR NEW GUIDE TO PURCHASING A HOME! Call us at 703-962-6196 and we'll send you our exclusive guide! Search for new homes here.

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