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June Is National Homeownership Month: Home Buying Myths Vs. Reality

By
Real Estate Agent with Coldwell Banker Realty 179530

 

Are Home Buying Myths Keeping Your Dream Of  Buying A Home From Coming True?

June is National Homeownership Month... too many people who dream of buying a home are afraid to because of misconceptions about their ability to qualify for a mortgage to do so.

 

Myth vs Reality

Two of the biggest myths about buying a home are that you need to have virtually perfect credit scores and that you need 20% of the purchase price to put down to qualify for a loan. Believing these myths is keeping too many people from attaining the American Dream of homeownership... uneccesarily so. 

 

The reality is that in the past year the average FICO credit score of mortgage borrowers is 722 and for FHA borrowers even lower at around 680. And you certainly don't need 20% to put down. On average, firsttime borrowers had a down payment of  just 6%. Even repeat borrowers didn't put down 20%, but averaged 14%.

 

If you're gainfully employed and have a decent credit rating, there is no reason to avoid buying a home because of myths about credit scores and down payments... and the time to buy is NOW, Home prices will continue to increase, as will interest rates, as will rental rates. NOW is the time to lock in your housing costs for years to come.

 

Home Buying Myths

 

 

Additional Articles On Why Home Buying Myths Should Not Hold You Back From Attaining The American Dream of Homeownership

Your Friends Are Crazy If They Are Telling You Not To Buy

5 Reasons Homeownership Makes Cents

2 Major Myths Holding Back Home Buyers

69% of Buyers Are Wrong About Down Payment Needs

Buying A Home Is Cheaper Than Renting In Most Of The USA


If you're a Charlotte metro area renter, who'd like to make the transition from renter to homeowner, contact Nina Hollander with RE/MAX Executive.

I can help you turn your rent payments into mortgage payments as well as to help you "Find Your Place!"

 I'd also love an opportunity to earn your business, exceed your expectations, and to prove to you that:

 "The Right Broker Makes All The Difference."

 

SEARCH ALL CHARLOTTE METRO AREA HOMES HERE

 

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Posted by

 

 Nina Hollander, RE/MAX Broker, Realtor

 

 

 

Broker, Realtor, MBA, GRI, ABR, SRES, CDPE, SFR, SPS, CMRS
Carolinas Realty Partners with Coldwell Banker Realty
Direct: 704-779-0813
Website: www.GreatHomesInCharlotte.com
Blog: News You Can Use From The Greater Charlotte Area
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Disclaimer:  Nothing in this blog article is to be construed as legal advice, tax advice, or financial advice.  For legal advice see an attorney.   For tax advice or financial advice see a tax attorney, certified public accountant, or other qualified professional.

 

Comments (25)

Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

We sometimes take for granted our knowledge of Real Estate. We can see a myth a mile away however home buyers have to depend on other means Nina...

Jun 04, 2018 08:08 PM
Elizabeth Weintraub Sacramento Broker
Elizabeth Anne Weintraub, Broker - Sacramento, CA
Put 40 years of experience to work for you

I second what Paul S. Henderson, REALTOR®,CRS, said. We have to remember our clients are not in the trenches. 

I had a seller ask me the other day why a home in a completely unrelated subdivision and in another city, would sell for more than her home. She was looking at a home in desirable East Sacramento and comparing it to her outdated home in Carmichael. I told her she may as well be looking at h.mes in San Diego.

Jun 04, 2018 10:01 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Nina I am not surprised that our friend George Souto  was the first to comment on this post, he could probably write a book about this subject, Endre

Jun 04, 2018 10:36 PM
MichelleCherie Carr Crowe .Just Call. 408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

Thanks for getting the myth-breaking word out on owning a home.

Jun 04, 2018 10:38 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Michelle Carr-Crowe-Top 1% Diamond Certified Real Estate Team Sells Cupertino San Jose Homes-Just Call 408-252-8900 Hi Michelle... don't know about you, but I'm always "correcting" bad assumptions by home buyers about what it takes to get approved for a home loan.

Jun 05, 2018 04:02 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Endre Barath, Jr. ~ hi Endre... as well as George Souto should! I'd be the first to buy at least a dozen copies to hand out to prospective buyers.

Jun 05, 2018 04:03 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents hi Elizabeth... that's something I always say to other agents... we can't assume the public, who doesn't transact real estate daily, will know all the ins and outs. I find many in the public start poking around in the internet and come to all sorts of odd conclusions about the purchase, financing, and negotiation process. Then I have to disabuse them of those ideas.

Jun 05, 2018 04:05 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Paul S. Henderson, REALTOR®,CRS, ~ good morning, Paul... no doubt, which is why when I think a topic has been "beaten to death" I step back and realize some messages bear repeating and repeating.

Jun 05, 2018 04:06 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Beth Atalay ~ hi Beth... it's easy to assume that everyone knows they don't need perfect credit or 20% down... but I've run into people who don't actually know this and come to me saying they don't think they can buy now because they don't have a 20% down payment. We just can't assume anything.

Jun 05, 2018 04:07 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Nina, credit post to soothe fears of potential buyers that they CAN buy, this year before rates increase again.

Jun 05, 2018 05:59 AM
Roy Kelley
Retired - Gaithersburg, MD

It is a great time to purchase a home. Dolores and I need to do some shopping.

Jun 05, 2018 06:11 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Joan Cox ~ hi Joan... I'm always amazed at how many misconceptions there are out there... to some degree I blame the internet... too many "voices."

Jun 05, 2018 07:21 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Roy Kelley good morning, Roy... a good time to shop for a home for sure. Your market is probably also seeing rising prices.

Jun 05, 2018 07:22 AM
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

Excellent myth busting Nina Hollander .

Jun 05, 2018 07:40 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Bob "RealMan" Timm thanks so much, Bob... myth busting today... ghost busting tomorrow! (Now I won't get that song out of my head!)

Jun 05, 2018 08:07 AM
Dan Tabit
Keller Williams Bellevue - Sammamish, WA

I tell renters they are paying someones mortgage, why not their own?  Home ownership is the best way to build wealth and the first investment we should all make. 

Jun 05, 2018 12:28 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Dan Tabit ~ hi Dan... that's exactly what I tell prospective buyers... they should stop paying their landlord's mortgage.

Jun 05, 2018 01:59 PM
PropertyMinder (AccelerAgent)
PropertyMinder, Inc. - San Jose, CA
Modern Tools for the Modern Agent

Thank you very much for debunking these myths with reassuring, empowering facts, Nina Hollander. Particularly comforting for folks in this area of the nation, no doubt. - Tim

Jun 06, 2018 01:37 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

PropertyMinder (AccelerAgent)  hi Tim... I come from the school of thought that knowledge is power.

Jun 06, 2018 02:17 PM
PropertyMinder (AccelerAgent)
PropertyMinder, Inc. - San Jose, CA
Modern Tools for the Modern Agent

Absolutely, Nina Hollander!! - Tim 

Jun 06, 2018 02:19 PM