The South Coast Real Estate Round-Up

In Real Estate Confusion Creates Paralysis

September 26th, 2014 11:01 AM by Christopher Terry

A recent survey from Wells Fargo reveals that many Americans feel that now is a good time to buy a home but may be reluctant due to uncertainty in the mortgage financing and home buying process. (If this sounds familiar visit for details on our no-obligation home buying consultation and how you can participate.)

68% of those surveyed said that they feel now is a good time to buy a home and 95% surveyed said that they would like to own a home if they already didn't.

What's interesting about the survey is that 74% of the respondents said that they understand the process but they way they answered some of the questions shows otherwise, revealing uncertainty in the mortgage and home buying process.

For Example:

  • 30% believe that only individuals with high income can get a mortgage loan. 
  • 64% said that you have to have "very good" credit to get a loan.
  • 44% believe that 20% down is a requirement.

Let's look at the issue of down payment. In a recent blog post from Freddie Mac about this issue they say that "40 percent of today's homebuyers using financing are making down payments that are less than 10 percent". They go on to say that since 2010 the number of people putting down less than 10 percent has gone up three fold.

A person can get conforming, conventional financing with as little as 5% down and can further reduce the out of pocket down payment to as little as 3% with gifts from family, grants or loans from non profits or public agencies. There are additional financing options such as FHA, VA, and USDA which have down payment requirements from 3% to 0 down!

Education is the Key. If you have been thinking about purchasing a home but unsure where to begin or have questions that are preventing you from moving forward consult a local real estate and mortgage professional. Ask questions...there are no silly questions, the only silly question is the question not asked! And if you are looking in the Greater Fall River Area, Bristol County or Newport County RI give us a call at 508-646-4777. Our team is here to help.

Christopher Terry is a licensed real estate broker in Ma and RI, has completed the Accredited Buyer Representative Certification, is a graduate of the Certified Distressed Property Institute, holds the prestigious CDPE designation, is a 4-Time winner of the Master Sales Society's 5/50 Award and is the founder of EZ Home Search Real Estate Inc.

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Posted by Christopher Terry on September 26th, 2014 11:01 AM


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