Working with trusted brokers can help ease those concerns and make the process of homeownership much easier to understand. Continue reading to learn more.
In the spring, many excited buyers get ready to enter the housing market. Others continue dreaming about the homes they'd like to buy. The truth is, many potential buyers continue to dream longer than they need to. Simply because they're confused about the homebuying process. Thankfully, working with a trusted broker can help ease those concerns and make the process of homeownership much easier to understand.
Here are just a few of the ways a broker is invaluable
A recent survey conducted by Ipson and Freddie Mac reveals the confidence level of Gen Z and Millennial buyers regarding the homebuying process. Between the homebuying process and the mortgage process, there are 230 possible steps in the transaction. With a trusted broker on your side, you certainly don't have to know them all to have a successful experience.
There are many reasons why these steps can change as you move through each one. Depending on your personal circumstances, the term or your mortgage, and the type of loan you use, the path you take may need to vary. That's why guidance and support from the experts is key.
In addition to the process itself, respondents in the survey definitely expressed concerns about understanding the types of loans available. Here are just a few of the basic loans to consider. Be sure to speak with your lender about the specifics of what will work best for you:
- FHA: Loans guaranteed by the Federal Housing Administration for first-time buyers. They generally enable qualified borrowers to enter the housing market with a lower down payment.
- Conventional: Loans that usually require a larger down payment. Repeat buyers usually use these types of loans since they have an established credit history as well as more money from the sale of their previous home (called equity) for a bigger down payment.
- VA: Loans available for Veterans of the U.S. Armed Forces and their spouses. They are guaranteed by the Department of Veteran Affairs.
- USDA: Loans for those living in rural and suburban areas. A qualified lender can issue a USDA home loan, and they are guaranteed by the United States Department of Agriculture (USDA).
Interest rates also popped up as a common area of confusion among Gen Z and Millennial respondents in the survey. When mortgage rates are this low and wages are increasing as they are today, overall affordability increases, enabling home buyers to stretch their mortgage dollars further. It's just another area where a trusted professional can help simplify the process and give guidance along the way.
There are many possible steps in a real estate transaction, but they don't have to be confusing. To understand your best course of action, let's get together today to ensure you have a trusted advisor.