Home Buying Myths

If you are interested in buying your first home, don't let myths and misunderstandings discourage you. 

Many potential buyers believe they can't buy a house.  Close to 15% of people in the United States state that they want to buy a home in the next few years but believe that it is financially impossible.  Another 10% believe that they can afford a home, but for other reasons choose not to buy.  

Myths about buying a home.

1.  In order to qualify for a house you must have 20% down payment.

2.  Lenders are required by law to provide you with the best possible interest rate. 

3.  You can't qualify for a house if you have been with your current employer for less than 5 years.

4.  Your credit must be perfect.

5.  Mortgage interest is not tax deductible.

The Truth.

1.  It is in your best interest to do some comparative shopping when it comes to loans.  There are 3% and 5% down loans available and there are some lenders and communities offering zero down payment loans.

2.  Every lender works with their own rates.  Rates change everyday, sometimes even during the day.  So once you decide to buy a home, check rates with different lenders and check them everyday. 

3.  Job stability is important but the 5 year requirement is only a myth.  If you have worked in the same field but changed jobs 3 times in the last 5 years many lenders will consider that continuous employment.

4.  Credit is important when qualifying for any loan.  However, if you have been out of a bankruptcy for 2 years and can provide a good letter of explanation it will usually be accepted. 

5.  When you make cost comparisons between renting versus owning, be sure to consider tax deductions.  When buying a home the closing costs, mortgage interest and loan points are all tax deductible. 

The next best move for a first time home buyer is to conduct research and ask questions.  Interest rates are lower than they have been in a long time.  So if you can buy a house this is a great time to do it. 

What happens when you imagine owning a new home?  What is important about buying a home to you?  I don't know if I am the right consultant for you or if you are the right client for me but if I could ask you a few questions it may help you.