5 Home buying myths
There are a lot of myths about buying a home that are easy to bust.
Here are a few of the big ones:
I need a 20% down payment.
FALSE! This goes back to the days when lenders had far fewer options. Now, you can get a mortgage for as little as 1% down and still have a low monthly payment. The better your credit; the more options you have. Get your score as high as you can BEFORE you apply.
I have to dig up a lot of paperwork.
FALSE! A lot goes into qualifying you for a mortgage, but these days much of the verification process — like collecting pay stubs, bank statements and tax information — can be done automatically by your mortgage lender. Realistically, once you are ready to buy your lender can take it from there.
It will take a lot of time.
FALSE! A good mortgage lender can take your application and give you a pre-approval letter in moments. Many even let you do it yourself online. This way the time is in your hands. Time is on your side.
My bank is the best place to get a mortgage.
FALSE! Banks don’t offer many mortgage choices. An independent mortgage broker in your local community can help you find the best options and the lowest rates.
I need to be “settled down” first.
FALSE! When you buy a home, you’re paying yourself, not your landlord. Don’t keep waiting based on temporary situations, make the sacrifice to prepare for the purchase. Save your income tax, overtime, and extra income. Even with down payment assistance there are some fees you will still need to pay out of pocket such as your earnest money, option fee, appraisal, survey, and even home inspection.