Mortgage rates recently rose to their highest level in over two decades, and spiraling home prices have made it much harder for people to buy homes. Still, many people may pursue the American dream of homeownership, despite the headwinds. However, another obstacle that may cause people to delay or not even make a purchase is the lack of education and the existing myths about the home-buying process.
Here are some current facts.
With information about home-buying readily available, why are there still myths about the process?
According to Clever Real Estate data writer Sam Huisache, the myths surrounding today’s housing market are concerning for would-be home buyers due to their potential to create barriers to homeownership.
“Overall, these myths can lead to financial setbacks, missed opportunities, and heightened stress for those considering homeownership,” Huisache noted.
She recommended that potential home buyers consider looking into home-buyers programs that would assist them in qualifying for a mortgage with no PMI, such as a USDA loan. Another option is to pursue a mortgage with a lower PMI rate that could help reduce the monthly payment.
Huisache suggested Black home buyers use both realtors and mortgage lenders who specialize in assisting clients with first-time home-buyer programs and other initiatives designed to create more Black homeowners.
“Many first-time home buyer programs offer free real estate education courses so people can take their knowledge into their own hands,” she offered.
For example, last year Bank of America launched The Community Affordable Loan Solution. It is a program aimed to promote homeownership, including for Black communities in Charlotte, Dallas, Detroit, Los Angeles, and Miami. The program offers qualifying home buyers a bank-provided down payment and no closing costs.
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Source: Black Enterprise