It’s safe to say that the coronavirus pandemic has upended our lives in more ways than one. As Arkansans stay at home working, many find themselves rethinking their living arrangements. More and more Arkansans are considering purchasing a new home with more land, a backyard oasis, or more space for home offices. Here to discuss why purchasing a home is something everyone can do … even during a global health crisis is Robert Brown, Loan Officer with Rock Mortgage.
Why buy when you can just rent?
Particularly now, buying is a much better idea than renting. Rates are extremely low, so your cost over time will be greatly reduced. We’ve all been spending a lot more time at home recently and noticing how we can improve our homes and our lives. Home owners have the flexibility of changing their surroundings without calling a landlord. Furthermore, homeowners have a lot more stability and protections in place compared to renters. Plus, you are building wealth. When you rent, you pay your landlord’s mortgage and then some, but when you own your own home, you build equity. As long as your financial picture allows it, I would strongly consider buying a home. The time is right.
What if buyers can’t put a full 20 percent down on a home?
Many folks put down 20 percent on a home, but having that much cash on hand may be difficult for some. The average amount put down on a home is actually around 6 percent. There are many different loan types, some requiring no down payment, so working with the right lender is key in finding your best option given your financial picture. If you are a veteran, a VA loan requires 0 down. If you are a multi-generational home, or cohabitating with friends, a HomeReady mortgage may be right for you. The right mortgage lender can point you in the right direction. Getting your down payment together and having the money ready in the bank can sometimes be a long process. Maybe you’ve been diligently saving and have a nice nest egg, but more times than not, people need to liquidate other investments to have the cash on hand. Sometimes this can take some time, so having the cash sitting in the bank ready to go will help you act quickly when you find your dream home.
Why do you think potential home buyers may be hesitant to purchase a home?
There is no doubt that buying a home is a huge financial commitment. However, it is a sound and smart decision. And, homes are moving quickly right now. When you look at the economics of owning your own home vs. renting, renting is much more expensive. According to Money Magazine, on average, homeowners pay just over 15 percent of their monthly income on mortgage payments, while renters pay about 30 percent of their monthly income on rent. Homeowners do have to worry about insurance, home maintenance and property taxes. But, instead of just giving your money to your landlord, you are building wealth.
What is the first thing someone should do when beginning the home-buying process?
Inventory is slim right now and those homes that are available move fast so it is important to get pre-qualified. To do this, contact a trusted mortgage lender. They will be able to tell you what your best mortgage options are given your credit score and other factors. You are only as strong as your team, so make sure you pick a mortgage lender that you can work well with. Every situation is different and you want to get a knowledgeable lender who will support you and guide you through the process to find the right mortgage for your specific situation. Feel free to contact us at Rock Mortgage with any questions. Now more than ever, our team is committed to supporting our community in any way possible.
For more information, visit www.rockmortgagelending.com or call 479.321.3355.