Key Takeaways:
- There are many home-buying myths that intimidate young buyers—and we’re here today to debunk these damaging myths.
- Buying a home is more affordable today compared to historical averages, which means you may be able to afford more home than you think.
- Here at Linda Craft & Team, we understand that being a young homebuyer can be overwhelming, which is why we’ve curated a collection of first-time home-buying tips!
Have You Given Up on Buying a Home?
Many young or first-time homebuyers are intimidated by the thought of purchasing their first homes. A recent survey found that some buyers ages 25 to 40 are unsure about the home-buying process, especially about what they can actually afford. According to the survey, 1 in 4 participants underestimated their buying potential by $150k or more—this goes hand-in-hand with 47% of participants not knowing what a good interest rate is.
Due to their uncertainties, many young buyers never started their home-buying journeys or have since given up on their searches. If you’re one of these timid buyers, then it’s time for you to learn these three key concepts about homeownership.
Down payments don’t have to hinder your dreams
According to Freddie Mac, the most prevalent down payment myth is that 20% is necessary. Operating under this detrimental belief often causes young buyers to stop searching as soon as they start. In the most recent Home Buyers and Sellers Generational Trends Report from the National Association of Realtors (NAR), the average down payment for homes purchased between July 2019 and June 2020 was only 12%. And when you narrow the report down to buyers in the 22 to 30 age range during that same time period, the median down payment was only 6%.
Don’t underestimate your home-buying power
Many young homebuyers have continued renting because they believe that they can’t afford a home that checks all their boxes—which means they’re missing out on the long-term benefits of homeownership. An article recently published by NAR notes that young adults are underestimating not only how much home they can afford, but also how much interest rates and home values appreciate over time.
Homeownership is more affordable now than it will ever be
With mortgage rates starting to increase in addition to home prices appreciating, putting off purchasing a home could cost you more the longer you wait. Experts predict that interest rates will rise in the second half of the year, and even the smallest increase can impact your buying power.
Ready to Buy a Home? Let’s Get the Ball Rolling!
The bottom line is that there’s no better time to buy a home in the Triangle than the present—and as a young homebuyer, the long-term benefits of owning a home are well worth taking the leap of faith. Contact Linda Craft & Team today to get started on the home-buying process, and we can discuss what to expect moving forward!