Owning one’s own home has always been a big part of the American dream – it means pride and security, control, stability and goodbye to landlords. And while America is changing the way it lives, the dream of owning one’s own home continues to be at the top of the list. As a matter of fact, the majority of Americans are eager to purchase a home and think now is the time to do so.
A recent survey indicated that 65 percent of people responding said they believe home ownership would be a dream come true.
So why continue to rent when you can buy?
That same survey, conducted by Ipsos Public Affairs, found that two-thirds of participants believed they’d need very good credit to qualify for a home loan and nearly half of respondents thought a good credit score was something over 780.
Perspective homebuyers are also scared off by the down payment. Many believed that a 20-percent down payment is always required to buy a house. Actually, depending on the type of loan, down payment requirements can be as low as 3.5 percent!
And creditworthiness isn’t determined based on a single factor, so potential homebuyers should find out what options may be available before excluding themselves based on credit score alone.
On the plus side, too, Fannie Mae and Freddie Mac – two government-backed mortgage companies – are raising the amount of money they will guarantee, for the first time since 2006. That makes easier for buyers to qualify for larger loans and get more home for their money.
A lack of inventory isn’t a problem we’re seeing locally. And home values are rising – a survey of more than 100 economic and housing experts forecasts home values increasing by 3.6 percent this year, which makes buying a home now a good investment.
Come by J. Paul Richardson & Son Real Estate. We’re an invaluable resource to homebuyers and especially valuable to those buyers who have never before purchased a home. Our real estate agents can help first-time buyers navigate the process of buying a home. We know the area, and we’re transparent with our clients. We can help you make the right decision for you.
The American dream lives on.