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Let’s call them “fences.” They’re those seemingly insurmountable barriers that keep you from entering your dream home. But much like actual fences, all you need to overcome them is a little lift – or a key to the gate door.
In this article, let’s discuss some of the fences that typically prevent a new buyer from purchasing a home: down payment saving, mortgage acquisition and suitable representation. These are common barriers cited by new homebuyers. For each, let’s explore how you can find the help you need.
If you’re considering buying a home but feel dissuaded by the challenges, this is the resource for you.
Amassing a Down Payment
This is typically the most significant barrier to entry for new homebuyers. Many people want a place to call their own, but they can’t fathom saving the requisite 10-20% down payment. On a $500k house, that’s a whopping $50k – $100k. Who has that kind of money lying around?
Very few people. But that doesn’t mean it’s unachievable. The best way to amass a down payment is to create a savings timeline, complete with accomplishable goals and monthly allocations. Let’s say you want to save $50k to buy a home in three years. You’ll want to stow away roughly $1,390 per month (or $695 per bi-weekly paycheck). That’s eminently more doable than creating $50k out of thin air. To help you along the process, consider budgeting apps like YNAB, Acorns or Mint.
Acquiring a Mortgage
So, you’ve figured out the $50k, but what about that other $450k? That’s where the bank comes in – offering you a mortgage, essentially a debt amortized over several years.
Banks don’t enter these contracts lightly. With that much money on the line, they need to vet debtors thoroughly before offering a mortgage. This could be a major stumbling block if you’re unprepared. The best advice here is to start early with a “pre-qualification” process, a self-submitted survey through your bank that assesses your creditworthiness. Next, as you get closer to amassing your down payment, you can kickstart the “pre-approval” process, a more formal test of your ability to assume mortgage debt. Here’s a helpful resource for undergoing the two processes.
Finding a Real Estate Agent
A great real estate agent makes a world of difference to a new homebuyer. Work-shy or “checked out” agents may not only prevent you from finding the right home – they can obfuscate important details about the purchase that may cost you in the long term.
Traditionally, finding a suitable agent was challenging. You were at the mercy of the Yellow Pages or “this guy” your parents knew. Now, it’s straightforward with open digital marketplaces like Nobul. On Nobul, you enter your criteria (minimum verified reviews, sales histories, etc.), and their AI wizardry recommends agents based on a “match score.”
According to CEO Regan McGee, Nobul has “massively simplified the whole process… People think buying and selling real estate is complicated, but that’s a way for agents to justify their fees.”
Let’s tear those fences down and ensure you get the keys to your dream home. Before you buy, check out budgeting apps, mortgage resources and Nobul, the first real estate digital marketplace making waves.
This content is a joint venture between our publication and our partner. We do not endorse any product or service in the article.
