Now, I know there are a thousand articles out there about why you should buy a home, I've checked a few out for the making of this post, and they're either boring you with "Capitol gain exclusion" info and the economy or telling you what you'll feel (proud) with this huge purchase on your back. I don't want to write those articles. I don't want to trick you at all, or pressure you into a decision, or leave you more confused and less informed feeling than before you read my post. I want to have an open and honest discussion about why buying a home can be a great thing, and all the possible reasons it may or may not be a good idea for you.
I can't afford it!
This is a huge point for a lot of people, but especially for young millennials who are just entering the workforce or are just starting to get ahold of their financial situation. What is it that you think you can't afford, the down payment or the mortgage? If it's a down payment, there are SO many programs to help you qualify for extremely low down payments, and you'd be surprised by how easy the requirements might be. Here's a website with more information about federally funded programs to help new home buyers: Home Loan Learning Center.
If it's the mortgage, you may also be surprised to learn that paying a mortgage can actually be just as inexpensive or LESS expensive than renting in your area. For example, my son and daughter-in-law are renting right now, but they'd love to own because they would be able to afford more home for their money in their area. Right now especially is a great time to buy because rates are a little less than 4%, much lower than it's been in a long time.
What about replacing and fixing things myself?
This is a good point, when you're renting you don't pay a dime to have the heater fixed or the dishwasher replaced. When you own your home, you own all of those types of expenses too, but like I said, your mortgage might be significantly lower than the rent you were paying, which means these extra purchases might bring you to the breaking even point. Since you have all the extra perks of owning anyway, why not? Another good point; some people like to have particular features or looks to their appliances and when you rent you can't easily change those things out. You might find it worth your piece of mind to know that you have the brand or style you trust and love.
Why do people keep telling me its an investment? I just put money into it and, who knows, the market might crash someday.
While the whole topic of it being an investment is far too large for me to get into in this modest post, I can tell you one thing, you never know what happens in life. If you were to get seriously injured and had a huge medical bill, your home could save you. Borrowing against your home can be risky, but it can also be the backup you never thought of. Another example: Someone I know has aging parents, and they've come to the time in their lives where they need 24/7 care. This person is using a second mortgage to pay for their parents care, but is now paying half as much for the mortgage than they were renting in their area. If they hadn't had the home to borrow from, who knows what kind of care they could have afforded for them.
I don't understand the process and it seems really complicated.
This is my area of expertise! When you work with a realtor to buy a home you are paying them for their time, but more importantly, you're paying for their knowledge. They have gone to school for this, they have put in countless hours studying everything they need to know to give you the best possible buying experience. Honestly, the way to make buying a home easy is by really knowing and trusting your realtor. You should be able to speak clearly and openly with this person, and you should feel like they really have your best interests at heart. If you meet with a realtor, and you're just not feeling it, don't work with them. Kindly and respectfully state that you've decided to go with a better fit. Our transaction is based so much on our relationship, that it really goes hand in hand. If you trust and genuinely like your realtor, you'll have so much more confidence in the process than you ever would if you brought home your own real estate text books and learned it all yourself. We are here to guide you through the WHOLE process, so you'll never get left dangling without knowing what to do next.
While these certainly aren't all the reasons why someone may be hesitant about buying a home, I hope I addressed some issues that I saw others weren't. Owning a home CAN make you feel proud and accomplished, it can make you feel more secure, it can give you the freedom to decorate and change anything you like, and it can be that big milestone you've always looked forward to. It can also be less daunting and out of reach than you thought possible, but the only way to find out is by talking to a realtor to see what options are available to you.
Please feel free to contact me with any and all questions you might have! You never know what you might learn or what options may be available to you that you never thought possible!
Have a great weekend everyone!
~Kelly Cranmer Valadez
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