As real estate agents who love to work with first time home buyers, we talk to people about home buying all the time. And in our experience, most people don’t buy homes because they think they can’t.
They want to buy a condo or house, but they think they can’t. Maybe they haven’t been working at their job for very long, or they have some dings on their credit, or they haven’t saved up enough for a down payment.
Some of the scenarios listed above are deal breakers, but not all of them. For example, there are first time home buyers programs in the Denver metro area that offer down payment assistance. And you don’t have to have perfect credit to buy your first home, just a minimum FICO score of 580, 620 or 640 (depending on the type of home loan).
Below are the top reasons people don’t buy first homes.
Don’t Want The Responsibility
Responsibilities come with owning a home, from maintenance and repair to yardwork and shoveling. There’s less responsibility with condos and townhomes than duplexes or houses, but you’ll still need to fix or replace everything that breaks. There is a comfort to calling your landlord to take care of everything, rather than having to worry about it and pay for it yourself.
Can’t Afford It
Many people don’t buy a home because they think they can’t afford it. If you fall into this category, how much are you paying each month for rent? If your rent payment is $800 or higher, we may be able to find a condo in the Denver metro for a similar monthly payment.
Can’t Save Up For A Down Payment
In the media, you might have seen that most home loans require a 20% down payment, which seems like an amount you’ll never be able to accumulate. But what’s less known is that FHA loans are available for first time home buyers with only 3.5% required as a down payment. And if that seems too high, there are first time home buyers programs in the Denver metro area that offer down payment assistance.
Can’t Commit To Staying In One Place
Renting instead of buying allows you more flexibility. At the end of your lease, you’re free to move – to another part of Denver or to another part of the country. When you own your own home, you can also move at will. But it can take time to sell your property, and you’ll need to pay real estate agent commissions and other closing costs. If you need to move before your home has appreciated, you could potentially lose money. A good rule of thumb is that if you plan on moving (for personal or career reasons) in less than 2-3 years, you might be better off renting instead of buying.
Don’t Want To Take A Risk
One of the main benefits to owning your home is the potential for the property to go up in value. There’s nothing better than watching your $150,000 condo become worth $180,000. But it can also go down in value, and you might not want to take that risk at this point in your life.
Is owning a home the right thing for you to do, and is this the right time? Reach out to us, and we’d be happy to talk to you about your situation and what types of properties are available in your price range. Please call (303) 222-0027, or e-mail firstname.lastname@example.org.
Note: Our commission isn’t paid by you – it’s paid by the seller. This is the usual agreement that most real estate agents work under in the state of Colorado.