Buying a house today is completely different than it was in 2003. This contributes to there being many ideas circulating around that aren’t necessarily true anymore, as things have changed. Some of the more popular myths right now are:
- Myth #1: You need to put 20% down – This just isn’t true anymore. Lenders are much more flexible nowadays and there are conventional loans requiring as low as 3% down and VA loan programs for veterans for 0% down.
- Myth #2: You should only apply for a mortgage if you have excellent credit – Lenders know the realities of the economy over the last 6 years and are more willing to overlook past situations, such as credit dings, bankruptcy, short sales, or foreclosures.
- Myth #3: Fixed rate mortgages should be the only option – 30-year fixed rate mortgages typically end up having a higher interest rate than adjustable rate mortgages (ARM) over the life of the loan.
- Myth #4: You should go without an agent and save yourself 3% – The commission is solely paid by the seller, so you aren’t going to save any money by representing yourself as a buyer.
- Myth #5: You should buy now if you can – Homes are probably a strong investment over the next decade or so, but there are many reasons that buying a home may not be right for you right now, such as that renting provides more flexibility and less commitment and you would need to have the financial ability to upkeep the home.
Click here to read more about the debunking of each myth and check out the full article >>