Arlington And Mansfield Home Buyers Secerts For Home Affordability

Arlington And Mansfield Home Buyers Secerts For Home Affordability

Home buyers today face tough challenges—housing prices have soared, a dollar doesn’t go as far as it once did and rent is more expensive than the past. How are people today making such a large purchase in spite of these hurdles? With more flexibility and a bit of creativity when it comes to financing, today’s buyers are finding ways to achieve homeownership.

Know Your Options (And Your Credit Score)

To even begin the home buying process, it’s important to know what resources are available. Turns out, according to a 2017 Fannie Mae working paper, many Americans don’t have a strong, or even basic, understanding of what it takes—financially—to buy a home, nor if they meet the criteria.

The first step to knowing if you can afford a home is figuring out what financing options are available to you, including and especially what mortgages you’re eligible for and, subsequently, how much you need/can afford to put down upfront. Not only did Fannie Mae discover that most consumers don’t know the minimum FICO score required by lenders, the survey also found that only 49 percent of consumers don’t even know what their credit score is.

Consumers also aren’t sure how much they even have to put down on a home. About 40 percent are unsure of the lender required minimum down payment. Plus, three-quarters of consumers don’t know about programs set in place to help with down payment troubles like FHA loans. Before consumers even start thinking about saving for a home, they should know what their financial resources are and, as a baseline, if they’re currently eligible to buy.

Save Up Enough Cash (But Not As Much As You Think)

One of the most daunting parts of homebuying? The down payment. In fact, two-thirds of renters cite saving for a down payment as the biggest hurdle to buying a home, according to the .The Housing Trends Report 2017 states, almost one-third (29 percent) of buyers active in the market express difficulty saving for the down payment.

For people buying the national median home valued at $201,900, with the traditional 20 percent down payment, that’s $40,380 up front—just to move in.

“The down payment remains a hurdle for a lot of people,” says Gudell. “Although, they should know they don’t have to put 20 percent down.” Although putting down less than 20 percent means additional considerations, such as the cost for private mortgage insurance (PMI), some find it worth the hassle. In fact, only one-quarter of buyers (24 percent) put 20 percent down, and just over half of buyers (55 percent) put less than the traditional 20 percent down.

Buyers are also getting creative about piecing together a down payment from multiple sources. According to the report findings, nearly 1 in 4 buyers (24 percent) build a down payment from two or more sources, including saving, gifts, loans, the sale of a previous home, stocks, retirement funds and other resources.

Call The Miller Group at Keller Williams Realty 817-793-7221 to get a free buyer or seller consultation and receive more information on  secerts for Home Affordability.The Miller Group has over  15 years of Real Estate experience and we are always available.


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Phone: 817-793-7221
Dated: October 6th 2017
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1301 S Bowen Rd ste 125
Arlington, TX