Mortgage Misconceptions That Stop You From Buying Home
Think you can’t buy a home? Think again!
Mortgage Misconceptions And The Facts.
Think you need 20% down or perfect credit to buy a home. What if you found out, that’s not true? Let’s break down the biggest mortgage misconceptions or myths so you can stop waiting and start house hunting.
You Need 20% Down
Myth number one you need 20% down. A 20% down payment is not required to buy a home There are options that let you buy with way less.
- FHA loans require 3.5% down.
- Conventional loans require 3% down.
- VA and USDA loans 0% down.
Saving for 20% could take years but with the right loan you can own a home much sooner.
You Need a Credit Score of 700.
Mortgage misconceptions, myth number two – You Need Perfect Credit. Perfect credit score not required. Many buyers qualify with a credit score as low as 640 and FHA loans go even lower.
Your credit score isn’t the only thing lenders look at. Other factors matter too, like your income, debt to income ratio, and home buyer education.
Not sure where you stand A lender can help you understand your options
Renting is Cheaper Than Buying
Myth number three renting is always cheaper. Think renting is cheaper than buying. Not so fast!
With Chattanooga rents up 12% year-over-year your monthly mortgage payment could actually be lower than rent while helping you build equity. With a mortgage you lock in your payments and build equity But rent it just keeps going up.
Stop paying your landlord. Start investing in you.
FHA, THDA, And Georgia Dream Loans Are For First-Time Buyers
Myth number four FHA loans are only for first-time buyers. FHA, THDA, and Georgia Dream Loans are not just for first-time home buyers. If you qualify you can use an FHA loan no matter how many homes you’ve owned.
First-time and repeat buyers can enjoy low down payments and flexible credit requirements.
Pre-Approval And Pre-Qualification Are The Same.
Myth number five pre-approval and pre-qualification are the same. One of the most common mortgage misconceptions is thinking a pre-qualification is all you need?
Pre-qualification a quick estimate based on what you tell a lender. Pre-approval a full financial review that proves to sellers you’re serious.
If you want to win in a competitive market preapproval is the way to go.
Don’t let mortgage misconceptions and myths keep you from buying a home. At Jay Hudson Homes we make the process simple clear and stress-free. Want the full truth read our full article.
Your dream home is waiting, let’s make it happen.
