Excellent Article In A Recent Edition Of The OC Realtor Magazine
Dated May/June 2018. Very informative and a big help to put “Buyers in the Know”. The author: Michelle McCann, Communications Specialist.
Myth One: It Costs Less Money To Rent
False. Talk to people in their golden years. Many of the people to whom I speak are very thankful that they brought a home many years ago. In many cases it is the major part of their retirement money. Tax write offs (still some), no rent increases, never told to move at a landlord’s whim, and equity growth, equity growth, equity growth.
Myth Two: You Need To Put Down At Least 20 Percent
False. The average down payment on homes purchased by first-timers in the US of A is 6%. I have never paid more than 7% down (I have been a licensed broker for 57 years, so minus 3%). Today, FHA requires 3.5% down (yes, there is Mortgage Insurance), but there are many agencies in California ready to assist in down payment buildup.
Myth Three: You Need To Have Perfect Credit
False again. A higher score sure helps, but if you have less than sparkling credit do not give up. Keep your FICO high, but do not despair if it is not 700. There are loans called Portfolio Loans, Collateral Loans, Seller-Financing Loans, Equity Share Loans, and there many mortgage assistance groups in California.
Myth Four: I Do Not Make Enough Money To Buy
False. Do you have any idea how much income you need to carry a loan? No, then visit your friendly State Licensed Mortgage Loan Originator and find out. You cannot reach a goal unless you know what the goal is. Take some time and get approved for a loan. Also, remember my mantra, “Your first home should not be THE home, it should be A home. THE home comes later.
For my first home, I was looking for a ginger bread front, wooden roof, 4 bedrooms, 2 bath, dining room, etc. My first home in Sepulveda, California turned out to be an excellent purchase (nothing down), but it was modern, asphalt roof, three bedrooms, 1 and a half baths, no separate dining room, etc. Now, the second home in Granada Hills five years later had many bells and whistles. My mistake, never holding on to that house or at least doing a 1031 Exchange into another rental. Never sell a home you buy if you do not have to.
Myth Five: Now Is Not The Right Time To Buy
False. Who says? If you are considering buying a home, start doing something about it. Find out more information. Find a friendly Real Estate Broker. There are so many nuances in buying a home and first-time buyers do not consider them. You need help, not a website. And for when, Former Chapman University President Jim Doti says, “The sooner the better. Get it while interest rates are low. If you can afford a home, now is good time to buy”. If you know of Jim Doti, you know he is someone to whom you should listen. And I say, “It is not as good as yesterday, but a lot better than tomorrow”.
Thank you, OCAR and Michelle, good job.