Facts vs. Fiction for Houston Home Buyers
If you have buying a Houston home on the mind, it’s important that you differentiate fact vs. myth when it comes to the home-buying process. The KW Energy Corridor Team is here to help you! Here are some of the latest truths when it comes to what it takes to buy a Houston home.
The down payment is one of the biggest hurdles for first-time buyers. How much you need and how fast you can save up for it depends on where you live, median income, median rents and home prices. But according to recent data, on average, it takes renters 3.93 years to save a 10 percent down payment in Texas, and it takes 1.18 years to save a 3 percent down payment.
When it comes to the down payment, you’ve got many options as a first-time buyer in Houston! In a recent study, 80 percent of buyers put down less than 20 percent, and 65 percent put down less than 6 percent! Under 20 percent is becoming the new normal.
Along those lines, average FICO scores of approved loans tend to be less than what buyers expect as well. The average credit score for 2017 loans in February was 720. For conventional, the average was 752, and for FHA loans, the average was 686.
Mortgage rates are still near historic lows, too! There’s been a lot of talk of rates going up, and they did for a short time, but lately, they’ve been decreasing again. They’re hovering around 4.08 percent right now, which is still a very low rate. It’s the lowest average for the past four decades!
It’s also wise to understand the American Dream Index. Forbes measures the prosperity of the middle class and examines which states best support the dream of homeownership. On average, the country was rounded out to 100 in January and jumped to 100.5 in February.
In Texas, the American Dream Index is 101.7, higher than the country average! Houston is a great place to buy a home, thanks to economic improvements, jobs, housing options and more.
It’s also wise to note that in a recent Rent.com survey, 88 percent of property managers have raised their rent in the last 12 months, and there are no signs of that stopping any time soon. Property managers also said they were 53 percent more likely to bring in a new tenant at a higher price than to renegotiate with a current tenant.
As you can see, there are plenty of reasons why now is a good time to buy a Houston home, and it isn’t as hard as you may think! The KW Energy Corridor Team is here to help you make your home-buying dreams a reality in the Houston real estate market. Contact us when ready!
KW Energy Corridor Team
Michael Bossart
11757 Katy Fairway | Suite 930
Houston, TX 77079
908-872-9332
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