Buying a home today is totally
different from buying a home 10 years ago. What was true isn't true anymore.
This has caused many myths about the process. Just like the TV show, I’m going
to Bust a few Myths about buying a home in today’s market.
Myth
#1: You need at least
a 20% down payment to get a mortgage today.
Busted! FHA
requires 3.5% for a down payment and some conventional mortgages are just 10%
down. Plus, if you qualify for a VA loan, no down payment is required -- you can
finance 100% of the purchase price.
Myth
#2: Only those with
perfect credit can get approved
for home mortgages.
Busted! After
tightening their requirements, lenders have now loosened them slightly to be
more realistic. They are a little more understanding of issues that many people
have had to deal with over the last few years. Blips on your credit report can
be overlooked with some documentation and explanation.
Myth
#3: If it’s at all
possible to buy a home right now, you should.
Plausible! This one
is true – sometimes. Mortgage interest rates are still low, and although house
prices are slowly creeping up, in most areas they are still very reasonable.
We’re also seeing a decrease in distressed homes for sale and more “regular”
sales happening. This gives buyers a much better choice when looking for a home.
That being said, not everyone should own a home. Flexibility, short-term
commitment and low maintenance are all advantages of renting. To see if owning
or renting is the best option for you, consult a Realtor who can go over your
personal situation with you.
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