While most people dream of having their own home, once they get down to the brass tacks, they get cautious, especially people of the younger generation. You cannot blame them because they are plagued by the thoughts of paying mortgage and worrying about job security. Economic uncertainties have caused many people to be laid off, pressurizing them to concentrate on just staying alive and getting a new job rather than buying a home. If you have a dream and that dream is to own a home, don't hesitate, with proper advice, you can actually make it happen.
The problems faced by prospective buyers
Homebuyers fear price rise, inducing them to buy homes that may not be the wisest choices for them.
1. The mortgage rate is higher causing many home buyers to put their home buying plan on the back burner. And for those who have actually bought homes, they are feeling the stress, and this has really deterred new homebuyers. They have to make sure they borrow to a minimum so they can pay off credit card balances every month. Fear of debt is a serious thing and it makes people to continue renting rather than buying.
2. The other problem with homebuyers is that they are traumatized by the usage of unfamiliar terms that get tossed around. Some of these terms like amortization, fixed rate mortgage, adjustable rate mortgage, assumption agreement home equity loan, consumer confidence index, securitization and scores of such words are all confusing to the poor homebuyer who is venturing out to buy.
3. The other thing that deters the prospective home buyer is the price quoted by the home seller. They don't want to buy a home that will cost a dime more than the house (with the same facilities and features) bought by their colleague.
4. Homebuyers are also worried that they don't have the funds to pay for down payment. And even if they have it, they may not have enough to pay for the mortgage.
5. Sometimes it so happens that a person buys a home, only to realize that they should have invested his money in a better way or bought a smaller/bigger property.
Now getting them solved
Every problem has a solution, similarly, you can solve most of your problems by hiring an experienced and reliable realtor. While it is good to be cautious while buying a home, there is no need to get worried or discouraged.
1. To know that the seller quotes a justifiable price, you need to be aware of similar kind of homes for sale in the same community. Since everything is black and white in the MLS, you can actually compare 'apples with apples' and 'oranges with oranges'.
2. Hiring a realtor would immediately solve the problem of not understanding the technical terms used during home buying and selling. He would also give you guidance on which kind of mortgage would be suitable for you, apart from what the loan officer is advising.
4. And if the homebuyer is apprehensive about paying off the loans after the down payment, then it would be better to get in touch with a loan officer, who would help him gauge his options. The loan officer can even tell the homebuyer how much money he would have to pay as monthly mortgage and whether it can be afforded by him. He will also introduce the buyer to several down payment assistance programs. This would solve the problem of incurring debts, another terrorizing thought for the homebuyer.
5. Nothing beats your decision to buy a property. It is one of the best investment programs that will make your money grow in the long run. You must however, ensure that the property is situated in a covetable location.