Affordability is the top concern for potential home buyers entering the summer season. That’s not a surprise. With prices and mortgage rates up, it’s natural that Americans who are hoping to buy might be leery when seeing news of rising housing costs.
But, though affordability conditions are challenging in some markets, buyers may have some misconceptions that are adding unnecessary stress and anxiety. For example, according to the results of one recent survey, potential home buyers see saving for a down payment as the most significant obstacle preventing them from buying a house.
But, at the same time, they overestimate the amount of money they’ll need to put down to buy.
The survey found 58 percent of participants said they are planning for a 20 percent down payment. But though that may be the recommended down payment amount, it isn’t required. The National Association of Realtors, for example, found that the median down payment for first-time buyers has been at 10 percent for the past three years and that,
Among first-time buyers, 61 percent made an average down payment of zero percent to 6 percent…
In other words, though home buyers are right to take the costs and responsibilities of becoming a homeowner seriously, they may want to explore all of their options before deciding they can’t afford to buy.