Explaining how mortgage money works is a great way to alleviate any stress a buyer might be feeling during the home-buying process.
Sticker shock is one of the biggest reasons why people are anxious when buying a home. However, once they know how mortgage money works, they likely realize that their buying power is stronger than they thought.
All because they’re using other people’s money.
When first-time homebuyers hear the word “mortgage,” they immediately think about the debt that comes with it. And since smart money says today’s first-time homebuyer is probably carrying substantial debt already (credit cards, student loans, car loan, etc.), adding more to the pile isn’t that appealing.
Naturally, purchasing a home outright with cash, or at least plunking down a huge down payment to avoid as much mortgage debt as possible, can seem like the best choice.
However, there’s a lot more to think about when deciding to purchase a home with cash versus a mortgage loan. And while it would feel really good to own the home outright, there are some long-term detriments to not seeking mortgage financing. Continue reading
Earn three hours of continuing education credit while learning valuable negotiation techniques from one of the industry’s foremost experts, David Knox. David is the owner and executive director of David Knox Productions, Inc. Continue reading
