Buying your first home is no walk around the Monopoly board. For most, it’s the biggest financial transaction you’ll ever make, and unfortunately, rainbow paper money is not a valid currency.
If you’re on the (white picket) fence about purchasing a home of your very own, there’s no time like the present to make your move. See for yourself why it’s such a great time for first-time homebuyers to make a purchase.
A Get-Out-of-Rent-Free Card
Even though purchasing a home is a huge expenditure, in the long run, it could be a good move for your finances. Rent costs have risen 2.6 percent since December 2017, the fastest increase since June 2016.
And if that number doesn’t send you house hunting just yet, try this: Millennials will spend an average of $202,000 on rent prior to owning a home, while baby boomers only spent $148,900. That’s $53,000 (!!!) you could be using to, say, decorate your master bedroom or renovate an outdated kitchen. That’s certainly enough to turn your champagne wishes and caviar dreams into reality.
The Down Payment Dumps
Are thoughts of massive down payment are giving you a, “Do not pass go, do not collect $200” vibe? You don’t need to be a Rich Uncle Pennybags that puts down 20 percent of the purchase price down. In the third quarter of 2017, the average down payment was just 7.6 percent of the sales price for single family homes and condos, and half of new borrowers put down 5 percent or less. Plus, the average down payment for FHA loans was 4 percent and 13 percent for loans made to millennials. See? Things are looking up already.
Ready, Set, Home
Trust us, you’re more ready than you think you are to make the plunge into home ownership. And you don’t need to spend countless months — or years — saving and skimping and eating ramen for dinner to sock away enough for a down payment. Case in point: 40 percent of buyers saved for a down payment in six months or less, according to the National Association of Realtors.
Buying a house is no roll of the dice, but it can be a smart, strategic investment. As your financial ally, we’re here to walk with you on the path toward home ownership and help you come out a winner.
Use our affordability calculator to help estimate how much house you can really afford.