So you’ve decided that you’re finally ready to make the transition from renter to homeowner! Congratulations! It’s an exciting – albeit, daunting – time! We hope you’ve been doing you research about the process, but keep in mind, not everything you read is true. Our team is here to clear up any misconceptions you might come across during your research. Take note of some of these common myths below, and we hope you realize that the home buying process isn’t as intimidating as you might think!
Myth 1: You need amazing credit
When asked what they believed were the biggest obstacles to getting a mortgage, young renters listed insufficient credit score or history as the number one obstacle. A good credit score can potentially make it easier to get a loan with a lower interest rate. However, if you want to become a homeowner before you can repair your credit, there are options! Guidelines for an FHA loan are much more lenient, and you can still qualify with a credit score of 580!
Myth 2: You need a 20% down payment
Although putting down 20 percent of your home’s purchase price can lower your monthly mortgage and interest costs, it’s not your only option. In fact, there are a handful of lenders that cater to different financial needs. Many young renters have cited a down payment and closing costs as the second-most common reason for not buying, when in fact, there are several different financing options that exist. Be sure to speak to your lender about your options, and don’t let this myth fool you.
Myth 3: It’s cheaper to rent
While renting may be more flexible and doesn’t come with costs of repairs and improvements, home owning is potentially cheaper in the long run. When you look at what you would be spending on owning vs. renting a home over the course of 30-year period, owning can be 30 percent cheaper in some regions. However, it does depend on your region. For example, owning a home in New York, is not the same as owning one in Houston. In the end, renting vs. owning is a case by case basis.
Myth 4: All agents are the same
You might have heard before that no two real estate agents are different. Those of us in the industry know that couldn’t be further from the truth! Some agents provide better service than others. Some have more expertise in certain areas. Contact our team for your next home buying needs, and you’ll find that our agents at Nan and Company Properties/Christie's International Real Estate are passionate, innovative, and unlike anyone else out there.
The home buying process can be a challenging and stressful process, but it doesn’t have to be! Don’t believe everything you hear, and do your research. In the end, the best buyer is an educated one.