Outdated Advice? The Realities of Today’s Housing Market
Real estate comes with plenty of advice, some helpful, and some...not so much. One common myth is that you need a 20% down payment to buy a home, but the truth is many buyers qualify with as little as 3% down, depending on the loan type. Another misconception? That you should always price your home high to leave room for negotiation. In reality, overpricing can turn off buyers and lead to longer time on the market. And if you’ve heard that you should wait for interest rates to drop before buying, think again; timing the market is tricky, and a good rate today combined with refinancing options later can still be a smart move. Clarifying these misunderstandings allows buyers and sellers to approach the market with greater insight and preparedness.
- When you need to work on your credit. Maybe your credit score is just starting to recover, but you need more time to pay down debts for a couple of years. With rent-to-own, you could start investing in a home while you bring up your score.
- You’re close, but not quite ready to secure a mortgage. You might have a good job with a significantly bigger salary, but you haven’t been there long enough for a lender to consider it a stable source of income. Or maybe you’re self-employed and you’re still building a reliable track record. Rent-to-own allows time to build personal wealth and financial credibility while working toward your homeownership goals.
- When you know you’re going to buy when the lease expires. If you’re not ready to buy when the lease expires, then you will lose any rent credit, i.e. investment, you’ve put into the home.
