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Help Buyers Feel Comfortable Buying a Home

October 1, 2012

Surprisingly, there are still buyers who hesitate to get into the market, even though both interest rates and home prices make this an excellent time. The Home Buying Institute surveyed readers to find why they were holding back and learned the following:

  • About 36% are afraid of having a mortgage they couldn’t afford
  • 22% are worried about buying a house that will drop in market value
  • 15% are fearful of losing their job after buying the house and not being able to make the payment
  • 5% are nervous about choosing the wrong mortgage

More than 2/3 of those surveyed cited some financial aspect of owning a home as their biggest concern!  The good news is you can address and eliminate a lot of those fears with information that will help them find a property that fits their comfort level and budget! 

Help Buyers Make Safe Choices

The main tool to alleviate buyers’ uncertainties is by completing a preapproval process early on. By laying out their financial picture at the beginning of their home search, buyers can see for themselves, in black and white, how the numbers stack up.  They can also look at homes only in their price range so they’re not tempted to buy a bigger home than they can afford.

Do a dry run

Armed with that information, another idea is to do a dry run with their projected mortgage payment. Buyers basically “pretend” they already have the house, putting aside the amount of the mortgage and other monthly home-related expenses, and then living on the remainder. This dry run helps them experience, day-to-day, how a mortgage and house will affect their budget and lifestyle.

Live on one

In a dual income family, some buyers choose to use just one salary to calculate how much home to buy. It can certainly help eliminate most of the worry about job insecurity if buyers can get by making a mortgage payment using just one income.

Use a lender that consults and educates

Finally, 5% of potential homeowners shy away from buying because they don’t want to choose the wrong type of mortgage. They’ve heard stories over the past few years of some homeowners making unwise choices, and they worry about doing the same.

By partnering with a lender that uses a consultative approach, however, like we do, your clients will have the information they need to be confident in their loan choices. Every mortgage we originate involves a detailed two-way conversation in which we listen to your clients’ short and long-term goals. Only then do we make recommendations on the variety of loan options that fit their budget and lifestyle.

In today’s market, buyers have more on their minds, but you can provide them with the expertise and the tools to be comfortable and take advantage of this amazing time in real estate!

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