A lot of would-be homebuyers decide not to buy a home based on some out-dated myths surrounding the home loan/buying process. Getting pre-approved and accepted for a home loan is easier than you might think.
Recognizing the most common myths surrounding the process and knowing the truth will better help you decide whether buying is right for you.
The top 5 first home buyer myths revealed:
- I need a big down payment. Some years ago, lenders required that you put down at least 20% of the purchase price. Today there are many options that allow you to put down as little as 3.5%. Some programs (VA Loans for Veterans) have no down payment requirement at all.
- My credit score isn’t good enough. Having a really good credit score will help you to qualify for better rates, however, your credit doesn’t have to be perfect to get approved for a mortgage. Call us for a free evaluation, you may be surprised what you can qualify for!
- Renting is cheaper. In most cases, this is simply NOT true. In fact, just the opposite seems to hold true. Most mortgage payments are less than rent paid for a similar property. Your rent is paying your landlord’s mortgage payment and helping him to build credit and equity. You can own for what you pay in rent.
- The mortgage process is too complicated. Online applications and pre-approvals are easier than ever. We walk you through the process and deal with the lender on your behalf. You meet with us, and we handle all the “behind the scenes” stuff. No worries here.
- I won’t be able to afford the monthly payments. Again, if you pay rent each month, you can probably afford to pay a mortgage payment. Unlike rent, many mortgages have a fixed payment month after month, year after year. Many landlords increase rent payments on a yearly bases. This won’t happen to you if you have a mortgage, and you are building your credit and equity at the same time.
Homeownership is a great way to build equity and achieve financial security for most Americans. Don’t let these common misconceptions keep you from owning the house of your dreams, and securing your families future in the process.
Call Pat at 414-817-8220 Ext. 14 for a FREE Consultation, or simply apply online for a quote.