Overcoming Common Homebuying Hurdles

Home can mean different things to different people. It can be your safe harbor, a place to make memories, a place to build traditions. Many hopeful homebuyers aspiring to purchase a home of their own look forward to these benefits - but may be hesitant or unsure of how to start the process. Luckily, with the right team on your side, you can move forward with confidence. 

We have outlined the most common homebuying hurdles and how you can overcome them. You may be closer to homeownership than you think. 

Homebuying hurdle #1: Low Inventory 

Solution: A Renovation Loan 

Competitive market? There are a lot of complex factors effecting the market right now. Rising interest rates are having an impact on the amount of house that hopeful homebuyers can afford. Compounded with low inventory, some are considering hitting the pause button on their home search.  

But there’s still hope! A renovation home loan can be a great option to consider if you still want to purchase a home of your own. Renovation financing allows you to look at homes you may have otherwise bypassed. If a house is listed as-is and needs major repairs, it may be aimed at investors who plan to flip the property. A buyer who requires financing to buy a home may not qualify to purchase the property under other traditional loan programs. But with renovation lending, you can buy the home and obtain financing to make those repairs. 

You could also look at homes with little to no curb-appeal knowing you’ll have the funds to spruce it up. With a little creativity and vision, you can turn it into the best house on the block.  

If all the move-in ready homes are out of your price range, don’t overlook a fixer-upper that you can make your own. Read more about how renovation financing is a great strategy in today’s market here. 

Hurdle #2: Coming Up with A Down Payment  

Solution: Down Payment Assistance Program 

For many people out there, the primary barrier to purchasing a home is lack of upfront funds to make a down payment. Fortunately, there are programs available that were created specifically to help people buy a home of their own. They are often called down payment assistance (DPA) programs or bond programs. 

Many down payment assistance programs were created to help first-time homebuyers, or those in specific income brackets, purchase a home of their own. These often come with flexible qualifying criteria and are adjusted for local median income and home prices.  

The best first step you can make is connecting with a local Certainty Loan Officer near you that help you review your options and discover what DPA options are available in your area. 

Hurdle #3: Competition for Homes 

Solution: Get pre-approved 

With low inventory and rising interest rates, having a pre-approval in hand before you start searching for your dream home can help you move fast in a competitive market. This will show the seller that you are serious and already qualified for financing and can tip the scales in your favor. 

Even if you are not in a competitive market, it can benefit you to know what you can expect to be approved for before looking at properties. You don’t want to fall in love with a home and then be disappointed to discover that you cannot qualify for it. Find a local Loan Officer near you to start the process. They can help you reach your financial and lifestyle goals and get you pre-approved for a home loan. 

Hurdle #4: Qualifying for A Mortgage 

Solution: Speak with Your Loan Officer 

Worried about the mortgage process? It can be intimidating to approach financing a large investment like a home without the right team behind you. Your Certainty Loan Officer will work closely with your real estate agent to build the right strategy for you.  

Many believe that you need 20% down to get a mortgage. That’s simply not true! There are many loan programs that can provide help, such as: 

• Conventional home loan down payment options as low as 3%. 

• FHA home loans have down payment options as low as 3.5%. 

• 100% financing for eligible homebuyers, such as USDA home loans and VA home loans.  

• Down payment assistance programs to help with down payments and closing costs. 

Your credit score will also be a big factor in what loan program you’ll go with. Because of that, you may want to start by finding out what your credit score is. Read more about credit scores and what goes into determining them here. 

To get started, find your local Certainty Loan Officer. They will help you determine the best program to proceed with so you can begin your home search with a pre-approval and a plan. 

Wrap Up 

We understand that purchasing a home can seem like an intimidating prospect, but it doesn’t have to be! Your home will be an investment in your future, and it will be worth the time once all is said and done. By working with a Loan Officer you can trust, you will ensure that you have the right strategies to choose from to overcome these common homebuying hurdles. 

Ready to get pre-approved. Find your Loan Officer here.