Debunking 4 Homeownership Myths
If you're thinking about purchasing a home, it can be hard to tell fact from fiction and there are a lot of myths out there. Today I'm hoping to help debunk some of the popular myths out there.
Myth #1: Owning a home is too expensive. And it's impossible come up with a 20% down payment.
It's true, buying and owning a home is a major expense, especially when you consider things like maintenance costs and property taxes. But these days a 20% down payment isn't always necessary. Factors like credit score may affect how much you will need to put down and but you may be able to get away with putting down 5-10%. One thing to keep in mind is that if you do put less than 20% down, you will generally have to purchase mortgage insurance, so keep that in mind.
Myth #2: There's no way I can get a mortgage--my credit history isn't perfect!
These days there are more stringent requirements in order to qualify for a mortgage, but that doesn't mean it's impossible. While you don't need to have a perfect credit score, the higher your credit score, the more financing options you'll have. If you're worried about how your credit score may affect your ability to obtain a mortgage, you may want to consider talking to a professional to come up with a game plan that works for you.
Myth #3: I don't make enough money to own a home.
For plenty of people, renting is the right option, and their choice of housing. But if home ownership is something you've always dreamed of, then don't count it out. In many markets, buying a home can be better in the long-run than renting, and may save you significantly. With a fixed mortgage you won't ever have to worry about rising rental costs either.
Myth #4: The rates for buying a home are no longer affordable.
While mortgage rates have been steadily rising, and are expected to continue to rise, they are still very low (hovering around the 4.4% mark.) Even back in 2008 rates were at around 6%, so in comparison the rates today remain very affordable.
I hope I've helped to debunk some of the myths that you might have about purchasing a home. If you have any questions or are thinking about purchasing a home of your own, let one of our highly qualified real estate professionals assist you.
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