Are you ready to take the leap and become a homeowner? In this video, I’m going to share 3 myths that everyone needs to debunk before they buy a home. By understanding the truth about these myths, you’ll be able to make the best decisions in your home buying journey.
Myth #1: You Don’t Need To Prepare In Advance Before You Find A Home
We find that the pros—those of you who will be savvy buyers—always prepare early. This means meeting with a lender and a real estate agent and having a plan in place before looking at any homes. With Murphy’s Law and real estate, when you want a home, you’re probably going to find one before you’re ready.
So get that pre-approval process done first. In another video, I talk all about the difference between a pre-qualification and a pre-approval. Make sure to check that out if you don’t understand what these terms mean.
Myth #2: You Need 20% Down To Buy A Home
This myth is absolutely not true. There are several different types of programs that come from different agencies. For example, Fannie Mae and Freddie Mac are conventional loans. Depending on your situation, you can buy with as little as 3% down, and you can also use an FHA loan.
FHA loans allow you to buy with as little as 3.5% down. You can also use a VA loan if you’re a veteran or a veteran spouse that’s eligible, which allows you to buy with zero down. The last zero down program is USDA. These are considered rural homes, but in our area, many areas are considered USDA eligible. We have tools that will help you figure out if a home is USDA eligible, so make sure you reach out to our team so we can give you those helpful tools to start the search as soon as you’re pre-approved.
Keep in mind the reason that people recommend having 20% down is that mortgage insurance will be charged in one way, shape or form. There are many different types of mortgage insurance that we’re going to talk about in a separate video if you don’t have 20%. Whether that’s FHA, USDA, or VA, there are fees involved in getting a mortgage that you’ll want to be aware of. Still, please know that 20% is not required and you might be able to be a homeowner sooner than you ever imagined.
Myth #3: I Can’t Afford To Buy A Home
Gang, if you’re renting, you’re already buying a home. It’s your landlord’s home. In many cases, you’d be surprised how much home you can qualify for based on your monthly payment.
When qualifying for a home, one of the things that lenders look at is what’s called your debt-to-income ratio. It’s how much you make versus how much you owe, which would include your mortgage. If you substituted your mortgage for your rent, you’re already budgeting and spending a certain portion of your income on rent. By working with a great lender, going through the pre-approval process, and getting educated, you may be surprised at how much home you can afford.
I hope this helped you understand the 3 most common myths about becoming a homeowner. While you might have thought owning a home was out of reach for you, the truth is you can make it happen. And if you’re ready, I’d love to help you on your journey.
If you have any questions about the home buying process—or anything else real estate-related—please reach out to me and I’d be happy to help. You can also subscribe to my channel to make sure you never miss a video!