At Palm State Mortgage in Central Florida, we do not want to see our clients deal with buyer’s remorse. We want our clients to be delighted with their mortgage and their home purchase. We also want them to retain their delight once a month when they face paying their monthly mortgage bill.
Remorse and Regret: Crazy, Sad News From New Homeowner’s Surveys
Home buying Without Remorse: Happening at Palm State Mortgage in Winter Park , FL.
Imagine our surprise here at Palm State Mortgage when we caught a recent CNBC report that 50% of homeowners have buyer’s remorse just after closing! Then they suffer more regret and anxiety each month when they face their payment.
In support of this fact, fact almost half of the 2241 homeowners or buyers that were interviewed by NerdWallet, declared they would buy differently if they had a do-over.
At the NerdWallet online resource we found a compilation of the results of that survey in the Home buyer Reality Report 2017.
It contains a wealth of up to date information and statistics from the personal financing advisor company, in spite of its trendy name.
Remorse: It Doesn’t Have To Be the Home buyer’s Fate!
Remorse Avoidance: Two Fascinating Facts You Should Know Before Mortgage Shopping
1. About Shopping For Mortgages:
Palm State Mortgage agrees with Tim Manni, mortgage specialist for the Nerd Wallet company, when he states, “One thing I’d advise — and no buyer really follows it — is to shop around and do more research not just for your loan but for the home…”
We agree with Manni’s advice, but Palm State Mortgage Company understands it can be difficult for busy millennials and Gen Xers to do all the research to find the best lenders.
In fact, that is exactly where we, as mortgage brokers, help home buyers, especially younger ones. We shop around for the right lenders for you.
As we told you in our previous blog, we do not work for a specific bank. We work for the home buyer. Palm State Mortgage Company has contacts that allow us to present you with the best mortgage options. We help you find a fit your fiscal situation so you won’t experience buyer’s remorse.
2. About Saving For Mortgages: Buying Without Remorse:
For No Remorse: Plan A Home Budget Before a Home Purchase
According to the survey, about 3 in 5 of these participants said they had regrets throughout the shopping and mortgage process.
We know you are curious, so we will tell you The Top Reason for The Home Buying Remorse: Buyers felt “they should have saved more money before buying…”
We invite you to follow this line of logic:
- There is a huge advantage to saving cash for a 20 percent down payment, even though you can pay as little as 3 percent down in some loan programs.
- Whereas three percent sounds much better than 20 percent, remember the affordability factor.
- Palm State Mortgage wants you to realize that with a small down payment, you are going to be forced to pay the additional cost of PMI. (Private Mortgage Insurance)
- To put it simply, this means your monthly payments will be higher, even if you are getting a good deal.
- Avoiding remorse depends on doing your homework and knowing how much you can spend monthly on your home.
Avoid Homebuyer’s Remorse With A Look At Your Monthly Budget:
To avoid the homebuyer’s remorse syndrome, you need to be aware of the basic math of two big monthly income numbers:
One: 28 Percent = Your Front End Ratio:
This is the percentage of your gross monthly income which you dedicate to the basics of home ownership: Include all Housing costs– taxes, principal, interest and insurance. In financial language, this is called the front-end ratio Check out this online resource to calculate your ratios and avoid buyer’s remorse.
Two: 36 Percent = Your Back End Ratio:
Happy, Remorse Free Couple
This happy number indicates the amount of your gross monthly income that includes monthly payment for all of your debts. We refer to this as your “back-end ratio.”
Likewise, the time of year when you shop matters. Spring Fever has hit the home-buying season, so you will currently see a higher demand for fewer houses and of course, higher prices.
So perhaps you should save some extra money for that dream house down-payment even before you shop for it.
Come and see Palm State Mortgage Company for more tips so you won’t become one of the 4 in 10 survey participants who suffered buyer’s remorse because they did not know their mortgage options.
We assure you that you won’t suffer the regrets like any one of the 28% of the surveyed participants who felt they were not a priority of their mortgage professional. At Palm State Mortgage Company, the client is our priority.
