Top 6 Reasons To Not Buy A San Antonio Home Debunked

Dated: 04/27/2016

Views: 226

2 Arnold PalmerYou? Buy a home in San Antonio? If that prospect sounds as unlikely as your becoming the next US President —well, this campaign season has shown us that anything can happen. See all the houses in San Antonio at www.AllSAHomes.com

Sure, amassing the funds and slogging through the necessary paperwork for your own piece of the real estate pie can be daunting, especially if you’re a less-than-stellar loan candidate. Still, if you just assume there’s no way you could buy a home, without doing any research, you could be missing out.

Here are some oft-cited reasons people don’t buy a home, and the reality checks showing why they shouldn’t give up hope.

Reason No. 1: ‘I don’t have enough money for a down payment’

This is probably the most common justification for not making the leap into homeownership. After all, few people have a huge chunk of cash lying around—and you need 20% down to buy a home, right? Wrong.

“Needing a 20% down payment has lingered as a myth for years and causes many potential home buyers, including those in the millennial generation, to miss out on getting into a home,” says Christina Bartning with National MI, a private mortgage insurer in Emeryville, CA.

AJ Smith, a personal finance expert at SmartAsset, points out that with a loan backed by the Federal Housing Administration or Department of Veterans Affairs, you can usually get by with a down payment of 3% to 5%.

In addition, “grants are an excellent way for young buyers with good credit and stable employment to subsidize their down payment,  These can typically be obtained by taking homeownership courses or purchasing in designated community development areas. Call me for more info on this awesome program - Traci - 210-465-5275. 

However, if you do put down less, keep in mind you’ll need private mortgage insurance until you pay down the loan to the 20% threshold.

Reason No. 2: ‘I can’t afford a mortgage payment’

Some people don’t realize the amount they pay in rent, especially in San Antonio,  is more than if they had a mortgage, Landlords are trying to recoup their taxes, insurance, maintenance fees and still make a profit. When you buy, you’re investing in yourself.

Reason No. 3: ‘I don’t have good enough credit history to get a mortgage’

So you’ve made some late payments, or have other skeletons in your past that have dinged your credit score. That doesn’t put a mortgage out of reach.

We have many homes available in San Antonio for Owner Finance, cutting the banks out of the deal.

Get this: Some private mortgage insurance programs allow for credit scores as low as 620.

We can even help you by referring you to one of our partners who does credit repair. 

But there’s one substantial caveat: Typically, mortgages for people with a lower credit score do come with a higher mortgage rate. And a very low score may require a higher down payment.

Reason No. 4: ‘I don’t have any credit history at all’

Even without a credit card, there are ways to build credit history.

If you’re a renter, ask your landlord about reporting your payments to establish a history. Experian makes it easy for your landlord to report your payments, or for you to do it yourself.

Reason No. 5: ‘I haven’t been at my job long enough’

“Work history is important,” says Jeremy David Schachter with Pinnacle Capital Mortgage in Phoenix AZ. “But even if you recently changed jobs and have only been there for a month, you can get qualified depending on your income and field.” A letter from your boss or place of employment will go a long way, so be sure to ask if you fear your relatively brief employment history might be an issue.

Reason No. 6: ‘I can’t find a home I like in my price range’

Your first home is rarely your Dream Home.  But making a dream home a reality takes time. After all, they call first homes “starters” for a reason, right? Call me for a tour of all the GREAT homes in San Antonio! I'm here to serve in any way!

Traci and Scott Lewis

San Antonio Realtors with eXp

210.465.5275   

Home prices in San Antonio are up! Find out what yours is worth instantly! www.ShouldISellMyCasa.com

See all the houses in San Antonio at www.AllSAHomes.com

Find out why eXp is eXploding in San Antonio!

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