Myth 1: You Need a 20% Down Payment
Myth: You need a 20% down payment to buy a home. Truth: Not anymore! Many lenders offer loans with much lower down payments, some as low as 0-5%. Additionally, there are various assistance programs for first-time buyers, such as the MMP, Chenoa, USDA Loan, VA Loan, and special grants available based on location and occupation. These programs can significantly lower the barrier to homeownership.
Myth 2: The only ideal time to buy is spring.
Myth: Spring is the only ideal time to buy a home. Truth: While spring is typically a busy season, excellent deals are available throughout the year. Home prices tend to rise month by month, so purchasing as early as possible can be advantageous. Every season offers unique opportunities in the real estate market.
Myth 3: It’s Always Better to Buy than Rent
Myth: It’s always better to buy than rent. Truth: The decision to buy or rent depends on your circumstances. Homeownership can be a wise investment and a wonderful way to accumulate wealth. In Maryland, home appreciation increased by an average of 6% in 2024, with Charles County seeing over 8% and Calvert County over 10.6%. Homeowners who bought in 2021 have experienced significant increases in home equity, whereas renters have faced rising rents. Before making a decision, consider factors such as lifestyle, job security, and financial readiness.
According to the Federal Reserve, homeowners had a median net worth of $396,200 in 2022, compared to renters, who had a median net worth of just $10,400. This stark difference highlights the financial benefits of homeownership.
For more tips and information, visit contact Ken Powell at 240.237.78555. Stay informed and make the best decisions for your real estate needs!