Could Your Tax Refund Turn You into a New Homeowner?
Many renters are watching real estate prices go up and hoping they’ll be able to purchase their own home before it gets much more expensive. They also know these low (below 4%) interest rates won’t last forever. They’ve read the statistics that show the average net worth of homeowners is 31 to 46 times higher than that of renters.
But, some potential buyers worry their credit isn’t good enough. Others think they need a huge savings account to make a big down payment.
What they don’t know is if you have a credit score of 620 and you have paid all your bills on time for the past 12 months, there’s a very good chance you qualify for a mortgage.
More important, there are loan programs that don’t require big down payments. For instance, one Wilmington lender is offering a 100% loan at 1.99% fixed with no mortgage insurance. The only “string attached” is your income must be under $50,000 a year. (It’s a limited program, so don’t procrastinate if you’re interested.) Another option is a USDA loan, which is also a 100% loan, but with a higher interest rate and mortgage insurance.
The point is there are options!
For those concerned about closing costs, consider this: over the next few months 8 in 10 Americans will receive a tax refund. The average amount will be roughly $3,000. For some it will be much more. That could be the extra money you need to get into your own house.
If you are watching your monthly rent go up every year, and are anxious to start making smart money moves that will help build your future net worth, it makes sense to ask, “Is now the time to buy my own home?”
To be clear, not every renter is ready for home ownership, but we can help you determine if it makes sense in your situation.
It costs nothing to learn more. Call Just For Buyers Realty at 910-202-4813 for a free, no-obligation, no pressure consultation.