69% of Buyers are Wrong About Down Payment Needs

The Belt Team sells lots of homes to first-time homebuyers and invariably when we meet for the first time, there are lots of misconceptions about what it takes to buy a home. How much money you need for a down payment is almost always one of them.

Here’s an article from Keeping Current Matters about some of the mythunderstandings:

69% of Buyers are Wrong About Down Payment Needs | MyKCM

According to a recent survey conducted by Genworth Financial Inc. at the Annual Mortgage Bankers’ Association Secondary Market Conference, mortgage professionals say that first-time buyers still believe a 20% down payment is necessary to buy in today’s market.

Nearly 40% of mortgage industry professionals surveyed believe that a lack of knowledge about the home-buying process is keeping potential buyers on the sidelines. Saving for a down payment is often cited as a huge barrier for first-time homebuyers to make the leap into homeownership.

If homeowners believe that they need a 20% down payment to enter the market, they also believe that they will have to wait years (in some markets) to come up with the necessary funds to buy their dream homes.

The greatest source of confusion cited in the survey results centered around down payments. The results are broken down in the chart below:

69% of Buyers are Wrong About Down Payment Needs | MyKCM

Rohit Gupta, CEO of Genworth Mortgage Insurance had this to say,

“While first-time homebuyers continue to drive the purchase market, we believe many are staying on the sidelines due to the misconception that a 20 percent down payment is required to secure a mortgage.

There are various low down payment options available today that allow prospective homebuyers to reach their dreams of homeownership sooner. It is crucial that, as an industry, we proactively educate eligible borrowers about solutions that will enable them to buy a home when they’re ready.”

Bottom Line

Don’t let a lack of understanding of the home-buying process keep you and your family out of the housing market. Let’s get together to discuss your options! Call The Belt Team at (703) 242-3975.

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Slaying Home Buying Myths

We get questions from first-time homebuyers like this all the time:

  • Do I have to have a perfect credit score?
  • Do I need 20% cash for my down payment?
  • Aren’t interest rates really high?
  • Can I really afford to buy?

Check out what Keeping Current Matters has to say about the myths related to buying a home:

Slaying Home Buying Myths [INFOGRAPHIC] | MyKCM

Some Highlights:

  • Interest rates are still below historic numbers.
  • 88% of property managers raised their rent in the last 12 months!
  • The credit score requirements for mortgage approval continue to fall.

The Belt Team has a Buyer Specialist whose expertise is First-Time Homebuyers. If you’re looking for someone to walk you through each step of the process, call Beth Dadisman at (703) 577-1144. Or click here to schedule a FREE consultation.

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Here’s how you might feel after you buy your first place! We helped these first time homebuyers find their dream home and go to settlement just last week! The Belt Team is ranked in the Top 20 Real Estate Agents in the State of VA (out of 30,000 agents). Don’t you deserve the BEST?!

The Belt Team Specializes in First Time Homebuyers

The Belt Team Named to “America’s Best Real Estate Agents” List For Virginia

On the heels of last month’s honor of being named to Washingtonian Magazines “Top Real Estate Agent List” – The Belt Team is proud to announce that out of nearly 30,000 Realtors in the State of VA, we have also been named to  “America’s Best Real Estate Agents” list by Real Trends for VA and were listed in the Top 20 Teams By Volume – with over $61 million in sales in 2014!

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Top Realtors Northern VA

The Belt Team serves all of Northern Virginia and has sold more homes in the Vienna Oakton area than any other Realtor or team since 1973. We also sell more homes outside of Vienna/Oakton than in! The Belt Team team is ranked in the Top 100 Teams for the largest real estate company by agent count in the world – Keller Williams Realty, with over 120,000 agents. And we are most proud of the Five Star reviews given to us by our past clients on independent real estate site Zillow.com because the reviews reflect that we are achieving our mission of “Changing Lives For The Better”!

If it’s time to change YOUR life, call Terry Belt & The Belt Team at (703) 242-3975!

Top 100 Teams Keller Williams

The Belt Team includes Terry Belt (CEO), Gail Belt (Founding Partner), Kevin Kleifges (Listing Specialist), Tom Reilly (Lead Buyer Specialist), Beth Dadisman (Showing Partner), Martin Bristow (Realtor), Christy Grossman (Chief Operating Officer), Jerry Belt (Special Services) & Patty Schuebel (Client Care Manager).