Buying a home is expensive. It’s an investment to purchase your first home. You may be feeling overwhelmed—or like you should just give up and rent forever. But, let us assure you, that’s not the direction you want to go. A big chunk of Americans wants to buy a home (75% of us) and say that it’s a priority. And, just like you, the cost is a major factor when considering to purchase.
Financial Concerns of Home Buying
Cost concerns are understandable. According to the National Association of Realtors (NAR), the median price of single-family homes has climbed 5.3% over the past years. Despite that increase, 15% of Americans have reported buying a home in the past five years. On top of that, 32% intend to do so in the next five years. There is still a lot of optimism here. Of course, for the average worker, it’s going to take some saving to get to a comfortable buying point. Funny enough, many have cited pets as the reason for buying and ending the cycle of renting. Further data from sites like NerdWallet suggest that buyers were even able to put 20% down on their first home. That’s a healthy amount.
Why There Would be a Lack in First Home Buying
Here’s the thing—you need to educate yourself on home buying. The results are in and some Americans aren’t informed about the value and costs of homeownership. Many experts have claimed that entry costs to homeownership can be a lot. This includes the closing costs and the down payment. These all should be factored into your budget. Don’t neglect to save for your retirement or having an emergency fund just so that you can buy the first home you view. Read, research, talk to a mortgage broker. When you stay educated on what you need to buy a home, you’ll be better prepared to make that purchase. In many cases, just having the facts can lead to smart savings and your first home!
Different Reasons to Buy a Home
When you’re thinking about buying your first home, the pros and cons list could go on forever. There are many different reasons that people make the plunge. One of the top reasons is simply being the next step in life. The second being that more space was needed. Again, we think it’s the pets behind that reason. Though you’ll hear a lot about being able to rent out a home and making some income off of it, it’s very low on the list of reasons to actually buy a home. The rent versus buy conversation will be ongoing. But, setting down roots and making a space for yourself are well enough reasons that people are purchasing their homes. And, if you’re buying for the first time, you’re not the only one. And, yes, it is a step in the right direction.
Talk to a mortgage broker today. Whether we’d like to admit it or not, we’d all like to take part in the American dream and own a home. It’s not an impossible feat, either. With the right savings and the right loan, you can soon be given the key to your very own home.