The Home Buying Institute, an organization that has been providing advice and tips for first-time home buyers for a decade, recently published a study that focused on the most common home buying fears. Although many of these fears are completely justified, there are certainly ways to overcome them.
#1 – Having a Mortgage Payment that is Too High
Committing to a large monthly payment for 15 to 30 years of your life is definitely a scary endeavor. However, if this is your biggest fear – and the Home Buying Institute says it’s the most prevalent of all of the home buying fears – you might want to consider a few things. First of all, you’ve already committed to paying a high monthly payment for several years of your life. Rent these days certainly isn’t inexpensive, and you’re committed to paying it each month just as you’re committed to paying your mortgage. What’s more, while your mortgage payment isn’t likely to change much over the years, average rent is increasing by just over 5% each year.
Many home buyers fear going “underwater” with their homes. This term is used to describe a scenario in which a homeowner actually owes more for a home than what it’s worth on the market. Although it certainly can happen from time to time, you can actually put these home buying fears to rest by doing some simple research. Sit down with your buyer’s agent and take a look at the home values to recently sold homes. This can give you valuable insight into the area, and it can let you know whether or not you’re paying too much for your new home.
#3 – Losing Their Jobs and Defaulting on the Mortgage
Today’s economy is certainly a stressful one, so it comes as no surprise that many home buyers are afraid that they’ll lose their jobs in the future and become unable to make their monthly mortgage payments. While this is certainly a valid concern, you have to be the judge of your own personal situation. If you feel that you might lose your job in near future (for example, your employer is going out of business or laying off a majority of its workforce), it might not be the best time for you to buy a home. All is not lost in this case, so try to remain optimistic; you’ll have even more time to get your credit scores up while you’re working on job stability.
Other Home Buying Fears
There are plenty of other home buying fears, which include choosing the wrong loan, ending up in foreclosure, or even buying a home with major structural problems. The good news is that most of these things can be avoided by doing plenty of research. Inspections can tell you whether a home has structural problems, and if you hire a good agent, he or she will help you find the right (and best) mortgage for your needs. Although it is sometimes difficult to avoid foreclosure, keep in mind that there are options available today that can help you catch up on your payments and avoid it.
These home buying fears represent the most common out of a group of nearly 2000 participants. Buying a home can certainly be a nerve-wracking experience, but fortunately, you can overcome many of these fears with nothing else than some solid research.