4 Home Buying Myths Resolved

By
Real Estate Agent with Heisler and Mattson 9556777

These are a few common myths about buying a property. See how these common myths are debunked!

1.MYTH: I need 20% down buy a property

TRUTH: You don’t need 20% down to purchase! FHA is 3.5% down and MassHousing is 5% down. Consider multiple programs when looking for a loan on your property. Is is best for you to put 20% down or low money down? Keep in mind, with FHA you will be paying PMI (Private Mortgage Insurance) for the life of the loan. You do have the option to refinance later to rid the PMI.

2. MYTH: I need an excellent credit score to buy a home

TRUTH: For the better lending opportunities, your score should be above 700. You can still purchase a home with a 600 credit score. Also, consider improving your credit score before being ready to make your purchase. If necessary, consider paying down debts for a period of time to improve your debt to income ratio.

3. MYTH: I need to earn lots of money to buy a home

TRUTH: The more you make, the more you can typically afford. Better housing options may be available with higher incomes but you can still find a great house with your current income. A way to increase your buying power is consider purchasing a multi family and living in one of the units. You can afford a much larger mortgage payment since the additional floors count as income for you.

4. MYTH:I should spend the maximum amount I am approved for

TRUTH: This will depend on your current situation. Your pre approval will give you the maximum amount to purchase a property. Looking at an amortization table may be helpful so you can see the payments over time. Initially, you are paying heavy interest upfront, and this decreases over time.

Thanks for reading! If you found this article helpful click the like button, it helps others see and learn from  the post

 

 

 

Posted by

Steve Bracero is a Real Estate Agent in Worcester County, Massachusetts and Real Estate Investor. Blog Topics include: Investing in Real Estate, Helpful Tips on House Hunting and Selling Homes. Areas of service include: Ashland, Blackstone, Douglas, Franklin, Grafton, Hopkinton, Hopedale, Medway, Milford, Millbury, Northboro, Northbridge, Shrewsbury, Southboro, Sutton, Westboro, Whitinsville, Worcester, Upton and Uxbridge.

 

   
Steve Bracero
Real Estate Agent, Heisler & Mattson
774-232-2526 | steve.bracero@heislerandmattson.com | www.stevebracerorealestate.com | 182 Turnpike Rd #209, Westborough, MA 01581

 



close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Home Buying
Location:
Massachusetts Worcester County
Groups:
1st Time Buyers
Buyer Information - What Buyers Need to Know in Today's Market
Advice for Buyers
Tags:
realtor
buying a home
agent
money
real estate
first time homebuyer
homebuyers
househunt

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
5,346,704
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

This is good information to share with prospective home buyers.

Jul 07, 2017 05:11 AM #1
Rainer
17,770
Stacie Streets
Fairway Independent Mortgage Company - Colorado Springs, CO
Mortgage Ninja!!

Steve Bracero don't forget about the 3% down Conventional/HomeReady/HomePossible options as well as the 0% down VA and USDA loans.... And here is Colorado we have CHFA down payment assistance so even on the 3% or 3.5% borrowers can get into a home for as little as $1,000 for qualified buyers.... But you are right, there are way too many misconceptions out there about the difficulty in purchasing a home!!

Jul 07, 2017 01:43 PM #2
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainer
65,072

Steve Bracero

First Time Homebuyer and Investor Specialist
Ask me a question
*
*
*
*
Spam prevention