Myths and Realities About Buying Your First Home

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Myths and Realities About Buying Your First Home

Category : Banking , Home Loans

Myths and Realities About Buying Your First Home

Man Holding a Moving Box

Misconception: Buying a home is too complicated.

Fact: The buying process may seem complicated externally, but once started the process can be understood simply. The key is to find respected reliable advisors to guide you through this process and help you understand the obstacles. This is where a professional and trusted Mortgage Loan Officer and Realtor are important.

 

Misconception: You need to wait until you get married to buy a home.

Fact: Marriage, although a major part of life is not always a deciding factor in a person’s future. You will discover there are no rules to point when in life each step of the process should be taken. Typically valuable years of homeownership can be lost looking for just that “right person” to come along. There is no tangible reason that ties marriage to home ownership. They can, in fact, be contrary to each of the stages of your life. One particular stage is not necessarily connected to the other.

 

Misconception: If you don’t have the funds for your dream home, hold off until you do.

Fact: There can be a major difference between “the dream of buying a home”, and “owning your dream home”.  Frequently the difference is merely the purchase, remodeling and subsequent selling of several middle homes until you can finally get into your “dream home”. Perhaps, waiting around, holding out to acquire your desired dream home might well become the illusive carrot at the end of the stick, always just out of your price reach. The truth is that you may be much better off using the “dream of home ownership” to work yourself into owning your “dream home”.

 

Misconception: You need a sizable down payment.

Fact: Although much has been said in the media about the benefits of a 20% down repayment, it is a misunderstood belief. You do not need that much down.  An experienced loan officer can help you find loan programs that require much less, many times as little as 3% down payment.  There are also Down Payment Assistance Programs (DPA) that can even help you come up with that 3%. There are also some loan programs that are specific to regional areas like 100% USDA lending options, 100% options for Veterans, and Utah Housing Lending options that go to even 103%.

 

Misconception: You have to have great credit to buy a home.

Fact: FICO scores are one of the biggest credit factors, yet, scores as low as 580 can meet the criteria for an FHA loan. Also, your credit score is snapshot in time of your over-all credit. There are factors within your credit picture that if tweaked properly can significantly increase your score quickly.  An experienced loan officer, although not able to do credit repair for you, can usually tell you what you have to do to make these modifications.  Many of these alterations are fairly basic and can raise your score significantly within a few months enabling you to move ahead with a home purchase.

 

Misconception: You should wait until the market gets better.

Fact: A poor market is usually the best time to buy as property is not moving and prices tend to be lower in a sluggish, slow-moving or poor market.  Consider this, by waiting for when the market increases you may be buying at a higher price against more competition for the best homes.  That doesn’t make much sense, does it?

 

Misconception: You cannot afford to buy a home.

Fact: Can you afford to not buy a home? Do you want to stay a tenant permanently? There may never be a good or best time to buy, but you can be certain that if you do not buy you will never get the opportunities of homeownership. Most first time homebuyers may already be paying almost as much in rent as they would pay with a home mortgage payment. The tax advantages and the future appreciation make homeownership from a monetary view almost less expensive than renting.

 

Unsurprisingly, there is a strong argument against these few misconceptions and many others that are thrown around.  However, the biggest attribute toward homeownership is desire. With desire you can overcome or defeat the vast majority of the obstacles like down repayment, credit, work (income) or any others which might seem insurmountable. Your desire to finally stop being a renter and exchange it for homeownership will be what leads you forward on the road ahead.


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