There are a lot of myths out there believed by first-time homebuyers that we wanted to quickly debunk for you.
1.) MYTH: You need 20% down to buy a home. There are several home loan programs out there that let you buy a home with as little as 3% or even 0% down.
2.) MYTH: If you’ve saved up for a down payment, you’re ready to buy a house. In reality, you’ll have closing costs to pay, not to mention things like appraisals and inspections. Talk to both your agent and your lender to find out exactly how much you need to save to buy your perfect home.
3.) MYTH: The lowest interest rate is always the best. That’s not always the case because in certain situations, you might need a little extra money up front. You might be able to use a lender credit for these expenses by taking a slightly higher interest rate. Additionally, the lowest interest rate might not come with the best customer service. In today’s market when it’s crucial to close on time and connect with your lender throughout the week, it’s important to have the best level of service.
4.) MYTH: Renting will be cheaper than buying. In the Raleigh market, your rent is likely to go up every year. A mortgage payment, on the other hand, stays the same every year. When you rent, you don’t build any equity, but spend your money paying off your landlord’s mortgage instead of investing in your own equity.
5.) MYTH: You need a credit score of more than 700. Many programs allow you to have a score in the low- to mid-600 range and still buy a home. In certain situations, we can even go as low as 580.
If you have any questions about buying your first home, don’t hesitate to give us a call or send us an email. We’re here to help!