We get it — buying your first home is a big commitment and you have every right to be nervous. But, look at it this way: It’s a huge investment in your future, and you signed on for student loans without too many second thoughts, right?
There are, of course, pros and cons to every financial decision. Even though Millennials today represent a large segment of the home buying market, they tend to be cautious in their approach, and thoughtful about the decision. Seriously, though, there are great reasons for buying a home, and now is a great time to do it. Mortgage rates still hover at or near 4%, but they may soon be headed higher. Prices also are climbing in most areas. Tax advantages are still in effect, and long-term investment value is almost guaranteed.
At Fifth Floor Real Estate, we are used to reassuring those who hesitate.
We have antidotes for your concerns:
- Won’t a buyer’s agent cost too much?
Well, no, because you don’t pay for that representation. It would be silly not to take advantage of the free advice. The full real estate commission is paid by the seller, and the advice you get from an experienced, knowledgeable buyer’s agent is invaluable.
- The whole process is too confusing.
Yes, it can be confusing. That’s why, as fellow Millennials, we stake our future on helping you build your future in a home perfectly suited to your needs and your goals. We relate in every way to your angst and your expectations. Not to mention the “comfort” we can offer. It’s better than therapy!
- Not enough cash for a down payment
Not the worst problem you will ever face, but this one deserves some discussion. First-time homebuyer programs still require as little as 3.5 to 5% down. In addition, there are local and regional grant programs, or a relative can “gift” you some or even all of the funds. We will help you prepare a checklist of other required expenses. In many cases, the total will be less than you expect.
- Less than perfect credit score:
If you racked up substantial credit card debt or missed a few payments along the way to steady employment, you are not locked out of home ownership, and there are lending programs tailored to specific situations. Your credit score might, however, affect your interest rate or down payment. Order your free report from creditkarma.com. Take steps to assure that it is correct and be aware of ways to improve the score or boost your chances for loan approval. Above all, be honest and thorough in completing applications.
- Need to build a rental history
That may once have been important. Today, not so much. What you’ll build by continuing to pay rent is your landlord’s bank account. A secure job is more important. Paying your bills on time is important. Cultivating a picture of stability and responsibility are important. The most important part of your employment record is that you are employed. Underwriters have specific requirements for backup documentation, and we can guide you through the maze.
We don’t believe in high-pressure presentations or pitches, but we’ll explain what we do over coffee or a quick lunch. Let’s get to know one another first and find a mutual comfort zone. Then we’ll get on with the business of helping you find that dream home. Contact us to schedule that meeting.