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The idea that you need 20 percent down to buy a home is outdated.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!
The Leick family share their unmatched customer experience working with our team.
If you are thinking about building a home with Creative do it! The entire process and team has been outstanding. Everyone warns you about how awful building a house is, with Creative it has been nothing but a turn key easy process. Their team is best in class.
I really enjoyed the weekly calls with the builder. It made me feel like I knew what progress was happening during the build, and really set a tone of trust with the builder that I wasn't expecting. I found those conversations, even when very short, to be extremely helpful in staying calm during the build process.
Me and my wife had the best experience with Creative Homes! They were very professional in their services. Our Creative Home sales rep, was outstanding!!!! He showed great customer service and went above and beyond his job to help our transition go smoothly. We definitely recommend Creative Homes for your next new home!
I cannot express how happy we are with the overall experience we have had with Creative Homes. Everyday my husband and I say “we love our house”. Everything from the flooring to the fixtures turned out better than we could have imagined. From the beginning to the end Creative was there for us every step of the way! We are so grateful to Creative Homes for building our dream home!
