Perhaps you’ve been renting a while and you really would love to buy your own home, but you think you can’t right now. Let’s debunk the top 5 home buying myths and show you how you can become a homeowner.
- You need perfect credit. The average buyer has a credit score of 714, but many lenders can help people with scores of at least 620 and some can even go as low as 580.
- You need a big down payment. There are many loan options for people who don’t have oodles of money in the bank. FHA loans require only 3.5% of the purchase price as a down payment. So for a $150,000 home that’s only $5250.00. VA loans are for active duty and former military members. VA loans require a zero down payment. USDA loans also have zero down programs. Conventional loans no longer require 20% down. There are 10%, 5%, and now even 3% down programs.
- You have to save up for years to come up with the down payment. As you can see above, the amount of money you need for your down payment is probably not nearly as big as you think! And even better, there are many down payment assistance programs out there. These organizations or government programs will give you money to use for a down payment. Sometimes it’s a gift and sometimes it needs to be repaid when you sell the house several years down the road. There are tons of different programs out there depending on whether you’re a first time buyer, a low income borrower, if you’re in the healthcare industry, if you’re buying a rural property, etc.
- You need to make a lot of money to qualify for a loan. Again, a misconception. True, you won’t be buying a $400,000 house if you make $35,000/year. But you might be able to buy a townhouse, a condo, or even a house. Buy something affordable now, and trade up to something larger in a few years. When you sell the first home hopefully you’ll have enough of a profit to use as the down payment on your next home.
- It’s cheaper to rent. As of October 2016, it is officially less expensive to buy than it is to rent. A lack of rental properties has driven rent prices up due to supply vs. demand.
Consider this scenario: A 3 bedroom house rents for $1500/month. The house next door is for sale for $191,780. It’s the same floor plan, same age, same condition. Buying it with an FHA loan with a 3.5% down payment at today’s interest rates would make your mortgage payment less than $1300/month. Plus now you get to paint, remodel the kitchen, finish the basement, put a water feature in the back yard, or anything else you want to do because it’s YOUR HOUSE, not the landlord’s. You also get many deductions when doing your taxes because you’re a homeowner, which brings the cost of ownership down even lower.
So how do you find out about these down payment assistance programs and get qualified? You need a Certified Home Buying Advisor to help you find them. The average Realtor® might know of one or two programs but they probably don’t specialize in helping buyers find down payment money. A Certified Home Buying Advisor is a licensed Realtor® who has been extensively trained in this area. And best of all? It’s free! There is no charge for our services. We help you find the right program, get pre-approved, find a home, and have the great pleasure of handing you the keys to your new home on closing day. Don’t let these home buying myths stop you from seeing if you can qualify for a mortgage and get into your first home!
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About the Author: The above article, Top 5 Home Buying Myths, was provided by Karin Carr, an authority on Cherokee County real estate and a leader in the field of real estate blogging. Karin has helped literally helped almost 200 families buy and sell homes since 2005. If you are in the market to BUY or SELL a home, she can be reached via email at [email protected] or by phone at 404-855-1807.
If you need help buying or selling outside of the Atlanta area, I can help you find a great Realtor®. Just ask!
Are you thinking of selling your home? I’m very good at marketing homes to sell quickly, and for more money. If you’re a first-time home buyer then you’ll be in good hands. I’ve helped countless first-time home buyers through the entire process of buying that first home! I have a real passion for helping folks buy and sell homes here in the great state of Georgia and I would love to connect with you!
I help people buy and sell real estate in the following north Georgia cities: Acworth, Ball Ground, Canton, Kennesaw, Woodstock, White, Roswell, Milton, Alpharetta, Dallas, Powder Springs, and the surrounding areas.