Buying a Home Can Be Scary… Until you know the facts!
Buying a Home in Massachusetts Can Be Scary… Until you know the facts!
Hi, I am Jeff Chubb and I wanted to share with you some truth’s when it comes to buying a Massachusetts home. There are many myths out there that are keeping our friends and family from buying a home…
“I need 20% down in order to buy a home” – This is the most common myth we hear. Potential Massachusetts home buyers are constantly being told they need 20% down in order to buy a home. This just simply is not the case. 71% of buyers who purchased homes put down 20% OR LESS. And today you can buy a home for as little as 3.5% down. If you are a Veteran then can even qualify for VA programs with 0% down. Consider this, the average down payment is 6%. AND down payments can even be gifted. (Thanks Mom and Dad!).
“I need an 800 Credit Score” This is the 2nd biggest myth when buying a home in Massachusetts. In September, the average credit score for approved loans was 737. But there are FHA programs that will give a borrower a mortgage with a credit score of 580 or higher. Financing is complex which is why it always makes sense to speak with a mortgage banker.
“Getting approved for a mortgage is hard when buying Real Estate in Massachusetts” – Last month 78.1% of loan applications were approved. I think it is important to remember that a bank isn’t trying to turn someone down, but they are cutting some pretty large checks and need to verify everything is in order. This can be a frustrating part of the process, but the good news is… They don’t ask for a blood sample AND you the light at the end of the tunnel results in a set of keys and owning a piece of the American Dream.
“Interest Rates are high” – Historically speaking we have some of the lowest interest rates we have ever seen. This alone makes it a great time to buy as our dollar is providing us more buying power than it ever has. Consider this, for every 1% interest rates go up, we all lose 10% of our buying power. Not to mention a fixed mortgage is locked in for a long period of time! There are no yearly increases like you see if you were renting a property in Massachusetts.
“I don’t have enough equity in my home to move in Massachusetts” – We hear this one all the time from Massachusetts move-up buyers. The great news is that 92% of all homeowners in the U.S. have equity in their homes. If this is a roadblock for any of your friends or family, then have them reach out to us. We would be more than happy to provide them with some preliminary numbers as an estimate. It’s no obligation and all informative.
These are just some of the myths out there when it comes to homeownership. If you have any specific questions about your home or the market conditions whether buying or selling a home throughout Massachusetts, then give us a call or shoot us an email.
We are here to help and look forward to being your real estate resource.