Although we’re overwhelmed with information, many homebuyers, particularly first-time homebuyers, have down payment misconceptions. Recently, NAR (National Association of Realtors) published data showing 9 out of 10 aspiring homebuyers are under the impression they need at least 10%+ in a down payment. 39% of non-owners believe they need 20%+, and 30% of homeowners believe 20% for down payment is required. Overall, 87% of home buyers surveyed were under the 10%+ down payment requirement. However, for first-time homebuyers did you know the average down payment over the past 3 years was 6%?
Such misconceptions can be an obstacle for first-time homebuyers attempting to get out of renting and own a home. What does this data all mean? It translates positively to first-time home buying prospects that their dream of owning a home isn’t as unattainable as they may think! With various mortgage options available to creditworthy borrowers, with manageable debt, it’s encouraged those interested in owning a home find a lender, and realtor to assist in beginning their home search.
If you’re a first-time homebuyer and interested in learning more about the pre-approval process and what you may qualify for please contact me.
Want to know how much your down payment can purchase? Calculate!
If you want to see more of what NAR discovered you can view it here