According to a recent Freddie Mac survey, a stunning 82 percent of renters think renting is cheaper than buying.
Viewed through a short-term lens, it’s understandable that renting somehow seems less burdensome. With increasing pressure from student loans, the cost of living and child care, purchasing a home can feel like just another financial albatross.
But perception doesn’t always match reality. The truth is that homeownership builds equity and is the primary driver for building wealth. Each year of successful homeownership adds nearly $10,000 in household wealth. It also creates stability for families and stronger connections within communities. Rent is just putting money in someone else’s pocket.
Many renters may not understand mortgages fully. They may even believe that their current financial situation restricts them from getting a mortgage at all.
Fannie Mae recently polled 3,000 consumers about their understanding of mortgage requirement rules. The results show that most prospective buyers are poisoned by a well of misinformation.
Maybe they have a friend or family member who had a less than enjoyable mortgage experience. Stories like that can become a strong deterrent.
Rather than risking being told no, many eager to own a home don’t even try to get a mortgage. They think rigid requirements will rule them out.
Education is the key to removing these obstacles to homeownership. Credit scores, budgets and mortgage fundamentals aren’t things that comes naturally. You need the desire to learn and someone who is willing to teach.
That’s what Bay Equity Home Loans brings to the table. We’re local. And we’re available around the clock throughout the entire loan process. If you have questions, write them down before you call or drop by. There’s no substitute for knowledge.
Don’t rule out buying a home because you think you’re ineligible. Armed with the right knowledge and guidance, you can buy that home you’ve been thinking about.
Even with the backdrop of rising prices, waiting longer simply delays building more home equity over time. Bay Equity’s seasoned team of professionals has decades of combined expertise. Bay Equity’s lenders have loan programs to help buyers qualify.
We know the ropes to guide you to multiple federal, state and private down payment assistance (DPA) programs designed to help even low- to moderate-income folks get into a home today.
Call Bay Equity for a mortgage conversation. Some people find to their surprise that they can buy immediately.