4 Common Misconceptions About Buying A Home

Though most Americans say they’d like to own their own home one day, there are a number of misconceptions about the buying process and current market that cause many to believe they won’t be able to get financing or can’t afford homeownership. According to a recent article from Christina Boyle, Freddie Mac’s vice president and head of single-family sales and relationship management, not being able to come up with a 20 percent down payment is the top myth keeping Americans from entering the market. Boyle says, though a lender may ask for 20 percent down, it isn’t always a necessity and, in general, you should expect to have a down payment of about 5 or 10 percent. Another common assumption is that you’ll need a perfect credit score in order to get a mortgage. While you’ll definitely have more options with a higher credit score, your score doesn’t need to be perfect to secure a loan. Boyle also points to recent increases in mortgage rates and the belief that homeownership is too expensive as reasons potential home buyers stay on the sidelines. But despite recent rate increases, mortgage rates are still well below historical norms and, according to recent research, owning a home is actually cheaper than renting in the 100 largest metropolitan areas across the country. More here.

Comments are closed.