Are these 5 Home-Buying Myths Stopping you from Buying a Home?
/Purchasing a new home can feel like an overwhelming process, but it doesn’t have to be! Read on to learn more about how owning a home is now more achievable than you may think.
Myth #1: I Need 20% for a Down Payment
There are a number of lending programs out there, and some that only require as little as 3% down, or even no money down at all.
Keep in mind that many mortgages require private mortgage insurance which protects the lender in the event you default on your loan. In many cases, that insurance (commonly referred to as PMI) will go away once you’ve reached 20% equity on your mortgage. This is automatically factored into your monthly payment.
I work closely with some of the best lenders in town who have a number of fantastic programs available to help buyers. Get in touch here and I can connect you. With the right team, getting pre-approved is a quick and painless process!
Myth #2: I Need Perfect Credit to Buy a Home
Nope. Though the better credit you have, the better your interest rate will be, having less than stellar credit doesn’t mean you’re out of the mortgage game entirely.
You are more likely to qualify for assistance programs with a credit score of 620 or better, and from there, your FICO score is broken into tiers, which factor your interest rate. Depending on what the other pieces of your mortgage application look like, you could potentially get an FHA loan with a score as low as 600. Every scenario is different.
While credit has its place in the mortgage process, many other factors such as income, assets, debt and payments, and personal savings all play a role when determining your pre-approval.
Myth #3: I Will be Outbid Unless I Pay Pay Over-Asking for a Home
For the first time in years, the market is stabilizing, giving more buyers the opportunity to purchase, and even potentially get a deal. I helped my last clients secure a gorgeous home in the area for under asking! Contact me here if you’d like the same representation.
Myth #4: Renting is Cheaper
Think of rent as a 100% interest rate. Additionally, from a maintenance standpoint, renting can offer the convenience of calling your property manager or leasing office and having them come and take care of it, but that’s basically it. Renting can ultimately cost you more down the road, as you have nothing to show for it at the end of your lease. Statistics show that homeowners have 36 X more net worth than of the average renter.
Whether you own or rent, every month you are paying a mortgage. Why not make it yours?
Myth #5: Don’t I Have to Pay a Realtor to Help me Find a House?
No! The commission for an agent representing the buyer is paid by the seller of the property. My services are essentially free to you, and I will work tirelessly until we find you the RIGHT home.
