Buying a home is a big decision. Many of us have fears that keep us from moving ahead. Let’s take a look at some common fears and their likelihood to affect you.Here are some of the most frequent concern of first-time home buyers.
1) What if I buy and the housing market collapses?
If a home is owned during a housing market collapse, typically the home owner will not sell it in a panic. People tend to ride out the storm and sell when conditions are better. Since the 1930’s the housing market has increased at a rate of 3.71% per year. That’s not “get rich quick” rate but over 10 or 15 years it makes a very big difference to your net worth. In 20 years would you rather have a home that’s paid for worth $300,000 to $1,000,000 or a box of rent receipts? Best of all, your mortgage interest and real estate taxes are usually deductible, so you’ll save taxes too.
2) Do I have Enough Downpayment?
The first step in buying a home begins with loan approval. Pre-approval takes just a few minutes to do and costs nothing. You choose a lender (more on that later) answer a few questions and they will tell you how much you can afford and how much you need down. Ask your Realtor about current grants and downpayment assistance. You will probably be surprised to find there are good programs available to help you.
3) Will Past Credit Problems Stop Me From Getting A Mortgage?
Lenders require a time period like 2 years or three years after a short sale or foreclosure before you can get a mortgage. However, I offer a program where you can rent a home and have the opportunity to buy it as time repairs your credit. So, we can usually work it out somehow as long as you are making payments on time in the present.
4) What If I Don’t Understand The Contract Or The Math?
As your Realtor, I will explain everything and help you understand. In addition, in Illinois, all buyers have 5 business days for their attorney to review all contracts to be sure you agree with them and that it is safe for you to proceed.
5) What If The Home Has Hidden Problems?
In Illinois, all purchasers have 5 business days to have the home inspected by a licensed inspector. This should reveal any hidden defects and give you an opportunity to get the seller to help pay for repairs or let you out of the contract.
6) What If I Pay Too Much?
A good Realtor will know the market and will present you with information on what homes have sold for like the one you are considering. As long as you don’t make an offer without seeing the facts, you should be very confident with what the home is worth.
Perspective home buyers should understand that a bit of fear usually accompanies any big purchase in life. In the case of a large commitment like a home purchase, it is natural to have some misgivings – “did I buy the right home? Should I have waited?” Working with an experienced and patient Realtor should help you get past most of your fears and enjoy the home buying experience.