I hear it all the time. Customers are renting because they assume they don’t qualify for a mortgage loan. This causes a vicious rent cycle. Rent is expensive, renters have a hard time saving money for a down payment, so they continue to rent.
Being stuck in the rent cycle is frustrating and unfair. But, don’t assume you are stuck without checking. Many potential buyers do qualify for a mortgage but don’t realize it because someone told them they didn’t.
Just because you were told no by one lender does not mean you do not qualify with any lender. Also, lending laws have changed and many have relaxed a bit. If you are a first time home buyer or have credit challenges, talk to me. I may be able to help you find a lender or at least help you get onto a program that will make homeownership a reality.
Rents have been rising across the country. A new study from Zillow shows how in many cities it’s cheaper to buy a home rather than remain in a rental unit. Buying a home in the Bluffton, Hilton Head and Hardeeville areas can be less expensive than renting. But, you need to understand how you break out of the rent cycle so you can purchase a home.
How much cheaper is it to buy instead of rent?
For the country overall, the median rent is $1,416 per month. That’s close to the average rent in our area for a two to three bedroom unit. That’s enough to cover the monthly expenses associated with owning a $289,505 home.
How can I buy a house if I don’t have a down payment?
There are many programs out there that require little or no downpayment. You just have to know where to look. Ask me about USDA, FHA, VA, and other Freddie or Fannie programs that will help with a down payment.
What if my credit score is under 700?
Many mortgage lenders have relaxed their qualification guidelines and the debt to income ratio has been increased. It is easier to qualify now even if you have less than perfect credit or have other debt (like auto or student loans)
What if I filed bankruptcy or had a foreclosure?
You do not need to wait 7-10 years to qualify for a mortgage loan. Most lenders have specific guidelines they follow for credit challenges. Many programs will qualify a buyer for a mortgage in as little as 2 years after a discharge of a bankruptcy or transfer of a foreclosure.
What’s my first step to purchasing a home?
Call me at 843-707-6956. We can refer you to mortgage brokers in the area that will be honest with you and help you qualify for homeownership. They can also let you know how much house you can afford so that we can start the home search together.