Buying a home is one of the most exciting and sometimes overwhelming steps in life. There's a lot of information out there and sometimes it's hard to sift through all the advice. Since mortgages are influenced by financial conditions which change often, what once was mortgage wisdom are now myths that seem to have long outlived their usefulness.
Myth 1: A Bad Credit Score Means You Can’t Buy a Home
Your credit score is important, but it’s not permanent. In fact, it can change from month to month. One late payment can cause a dip, but making consistent on-time payments and practicing good financial habits can help your score recover over time. Even a bankruptcy doesn’t mean you’re disqualified from buying a home forever. Many buyers with past credit challenges have successfully purchased homes by staying on track and working with lenders who offer credit-flexible loan programs.
Myth 2: Lenders Will Nickel and Dime You with Fees
Yes, there are fees involved in getting a mortgage—but that doesn’t mean your lender is out to get you. A trustworthy lender will be upfront about every cost, and many of those fees actually go to third parties for services like appraisals, inspections, and credit reports. Your Loan Estimate will outline all the charges in a clear and easy-to-read format. If anything was overestimated upfront, you’ll see those adjustments reflected at closing.
Myth 3: You Need a 20 Percent Down Payment
The idea that you need 20 percent down to buy a home is outdated. While putting 20 percent down can help you avoid private mortgage insurance (PMI), it’s far from a requirement. Many loan programs allow for down payments as low as 0 to 3.5 percent. Government-backed loans like FHA, VA, and USDA offer low or no down payment options, and many states have down payment assistance programs to help first-time buyers. There are more paths to homeownership than ever before. The Bottom Line Don’t let myths keep you from taking the next step toward homeownership. Talk to a trusted lender who can help you explore your options, understand the facts, and guide you through the process. You might be closer to owning a home than you think.
Hear from our Mortgage Coach at Better Built Mortage, Jim!
Best quality and people to work with. This is the 4th home I have built in my lifetime and by far the best of the best.
Everyone at Creative Homes was very easy to work with. They were very kind, helpful, professional and helped us through some ARC roadblocks so we could get the home we always wanted. My husband and I highly recommend Creative Homes!
"The whole process was incredibly easy. I couldn't believe how perfect the house looked the day I moved in! The attention to detail shows in the little things. I'm continually impressed with features I find throughout my home."
