Why You Don’t Have to Wait to Buy a House

JUNE IS NATIONAL HOMEOWNERSHIP MONTH

We’re officially halfway through June which means summer is basically here. Kids are out of school, the NBA season has wrapped up, MLB is in full swing and everyone is enjoying more daylight hours and barbeques with friends and family.?

In the mortgage world, we’re deep into purchase season and with June being National Homeownership Month, now is a great opportunity to reflect on what’s going on in the market and why it’s still a good time to buy a home.

DEBUNKING THE MYTHS

I came across an interesting statistic the other day – 79% of non-homeowners believe that owning a home is part of their American dream. However, nearly half of those surveyed cited lack of financial readiness as the main obstacle preventing them from achieving this dream.

There’s a lot of misinformation out there, especially around the costs associated with purchasing a home. Often times, consumers think they have to put 20 percent down or that renting is significantly cheaper than buying. This is an outdated way of thinking.

Today, many lenders offer conventional loans with as little as 3 percent down. Home affordability is more within reach than people think, and the reality is your monthly mortgage payment can often be cheaper than rent. Plus, a first month’s rent and security deposit are sometimes more than closing costs when buying a home – especially since 20 percent down is an option, not a requirement. At UWM, even a 1 percent down product is an option.

Many consumers are also weary because interest rates have increased in the last 12 months. While rates are no longer in the 2s and 3s like they were a couple of years ago, they are still historically low, so it’s important not to let that deter you from your dream home. I always say date the rate, marry the house. When rates drop again in the next couple of years, or maybe even next year, you’ll be able to refinance and save additional funds.

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MORTGAGE BROKER OR BANK?

When looking for a home loan, most consumers choose their bank or retail lender because of convenience or familiarity, but working with an independent mortgage broker can provide you with access to more options, an expert advisor and cost savings.

In fact, the latest HMDA data (Home Mortgage Disclosure Act) from the government shows that mortgage brokers are saving borrowers $9,407 and minority borrowers $10,424 over the life of their loan compared to retail lenders and mega banks. That’s significant savings in your pocket.

Banks and retail lenders with big budget TV commercials will give you their best deal – not the best deal. They are not shopping around for tailored solutions. Plus, banks tend to have higher costs because they traditionally have more overhead and other lines of business including auto, credit cards, education, etc. They are not a mortgage expert like a broker who only focuses on one thing – mortgages.

Purchasing a home, especially your first home, requires expert guidance to ensure you know your options and ultimately get the best deal. It’s complex and can be overwhelming, but when you work with an independent mortgage broker, they can help ease that stress. They’re embedded in your community and have access to a variety of lenders and products so they can find the best possible loan for your specific situation.

There’s no one-size-fits-all in this industry, and what might be right for one person may not be right for another. Luckily, FindAMortgageBroker.com gives you access to hundreds of mortgage experts in your area who will help guide you through every step of the process. ?

Don’t let the common misconceptions make you feel hesitant about finding your dream home.

Alex Elezaj

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