Home Buying Myths

    Home Buying Myths

    Feb 11, 2019

    Although the internet can be a great resource for a variety of information, a lot of that information is incorrect. One of the most important and expensive decisions in your life, buying a home, tends to circulate a lot of misinformation. Most of that misinformation is in regard to how much of a down payment you need or what your credit score needs to be. Let's go over the real facts about buying a home and knock those myths out, so they don't hinder your ability to make a purchase!  

    CREDIT SCORES

    Though it may come as a surprise, you don't need a perfect credit score to purchase a home. Traditional lenders will work with credit scores as low as 640, but your agent can also get you connected with local lenders that accept credit scores as low as 580. Although there are other required stipulations to qualify for the loan, you don't need a perfect score in the 700 or 800's to get approved for a mortgage. 

    DOWN PAYMENTS

    You don't have to sell an arm and a leg to be able to purchase your dream house. There is a huge misconception that you need to pay a minimum of 20% down to buy. That information is outdated. These days, there are a variety of loan programs that only need an average of 3-5% down. Based on your income or military status, you may even qualify for mortgage programs that require 0% down. Although you'll expect to pay an additional 3% in closing costs, which is separate from the down payment, this is still significantly less than 20% of the purchase price. If you're in a buyer's market, you may even be able to negotiate for the closing costs to be covered by the sellers. 

    Be sure to connect with a local real estate agent to ensure you have the right facts. Don't let these myths persuade you into thinking you can't qualify or afford to buy a home. There are a variety of programs to help you get into your dream house. Since these vary by state and county, it's imperative to call your agent and let them fill you in on the facts. If you still aren't financially ready for a home purchase, there are some great lenders out there that will help guide you and show you some financial steps you can take to eventually get you down the homeownership path.