4 myths about buying a home from a real estate agent and business owner
By Amirah Fattom
Have you ever heard the myth “you swallow eight spiders a year while sleeping”? It’s creepy and weird, isn’t it? Well, I can say the same about real estate myths, too. Well, they’re not so much creepy, but definitely weird. There are a lot of myths surrounding the requirements of buying a home and it can get a little intimidating. Let me break down what’s true and what’s not.
Myth #1: You need a 20% down payment.
Not anymore. You can qualify for a home with 3% to 5% down, and there are programs available through lenders that allow 0% down. Yup, you heard it here, folks. A grand total of $0 for your down payment.
Myth #2: You can’t buy a home because you have student loan debt.
Student loan debt is calculated into the monthly “Debt-to-income ratio;” so regardless of how small or large your loan is, it’s counted for based on your monthly required payments instead of the complete loan amount. Don’t stress. Chances are, you’re more qualified for a mortgage loan than you think.
Myth #3: Your credit score needs to be 780+.
Some lenders will qualify you for a loan with a credit score of 580+. Of course, the higher your credit score, the better interest rates you’ll get, but having a lower credit score doesn’t automatically close the “home buying” door for you!
Myth #4: Buying a home on your own is cheaper than working with an agent.
That actually can’t be further from the truth. As a buyer, you’re represented by an agent for free. Your agent doesn’t charge you to represent you. The seller’s pay for your agent’s fees — so all you need to worry about is finding the right home for you. Pretty neat, isn’t it?
It’s important to talk to both a realtor and a lender when starting the journey of buying a house because they’re well versed in the world of real estate. They are also the perfect resource for questions, and accurate information.
So what’s weirder? Swallowing a spider in your sleep or being told you have to always have an immaculate credit score to own any form of real estate? I don’t know about you, but both seem pretty tied to me.
Header photo by RODNAE Productions / Pexels
