We know that everyone has at least some reservations when considering purchasing a home. It’s completely understandable, there’s a lot to consider! Financial issues in particular tend to be the most intimidating and too often people fail to reach out for help. But, we’re here for you! We’ve laid out some of the most common obstacles facing our first time buyers today, in this blog.
Down Payment

A common concern we often hear from first time buyers is that they’ve delayed looking for a home because they’ve heard that buying a home requires a 20% down payment. While it’s true that 20% is recommended, as it eliminates the need for mortgage insurance, 20% is not the rule of thumb.

There are a lot of options for no- or low-down payment mortgages if you qualify. If you’re a veteran or active duty service member, for example, you may be able to get a VA loan with 0% down. FHA offers mortgage loans with as little as a 3.5% down payment, while the USDA also offers no-down-payment loans.” - LendingTree.com

 

As a part of our buyer consultation, we’ll work with you to identify a down payment that fits your needs and work with you to create a plan to get your down payment where it needs to be.

Credit Problems

 

Credit problems can be scary and uncomfortable to talk about. But you should know, we encounter credit problems with a large variety of clients. We understand that everyone has unique circumstances. We’re here to help, not to judge!

Luckily for you, repairing credit can be easy! An estimated 5% of credit reports contain errors and getting on the right path to credit repair can be as easy as having those errors removed. When you work with The Monaghan Group, we’ll also discuss how to focus on paying down your bad debt, getting a plan together to make sure your payments are on time, and discuss alternative possibilities such as exploring a low credit score FHA loan and using a co-signer.

Low Income

 

Perhaps one of the scariest obstacles buyers face is a low income. That is why our buyers consultations are so important. We’ll discuss how much home you can afford and explore Arizona State buyers programs for low income buyers.

We’ll take an honest look at your finances with you and help you determine if buying is the right move. In some cases it may make sense to wait, but we’re still available to help develop a plan to move towards home ownership!

 

By the way, if you haven’t already asked your Monaghan Group agent about attending one of our Dave Ramsey Financial Peace events, give us a call and we’ll be happy to get you signed up for the next event!