4 Most Common Homebuying Myths Exposed!

Buying a home can be an exciting time – but let’s admit, it’s not a simple process. Throughout your home buying journey, you’ll be hearing a lot of advice and recommendations as to what you need to know about purchasing a home. You have the discretion as to what advice should you heed – but one thing’s for sure, there’s a possibility that not all of them are true. So today, we’ll be exposing the most common homebuying myths!

Myth #1: You need to pay 20% down payment…

No, you do not have to make a 20% down payment. Times have changed, and there are loan programs designed with first-time homebuyers in mind.  Even if you are ready to make a large down payment, it still may be in your best interest to weigh all options.

Myth #2: You should buy a home equal to the amount you qualify for … 

This home buying myth can cost you! Just because you’re approved for a $700,000 mortgage doesn’t mean you need to buy a house for $700,000. While lenders look at your debt-to-income ratio (they typically want to see no higher than 36%), you have to factor in expenses that might not be included in that number — like child care, entertainment, your savings, etc.

Myth #3: You need really great credit to buy a home … 

Years ago, this was a true statement. However, today’s home buyers have a wealth of options available to them — even with less than stellar credit. While having poor credit can certainly increase your interest rate and down payment requirements, there are avenues you can take to buy a home. FHA loans, for example, require you have a credit score of 500 or higher.

Myth #4: It’s cheaper to rent than buy…

There may be some truth to this in the short term, but if you plan on renting for a couple years or more — it’s in your best interest to look into a home purchase. That’s because mortgage payments are stable (when you choose a fixed-rate), whereas rent can rise annually.

Bottom Line

Now that you have homebuying myths exposed, home buying might be a smoother process for you. Got any more questions? Let’s connect today – I’d love to help you out!