2 Myths Holding Back Home Buyers

dreaming of buying a home

In a recent article, First American shared how millennials are not really any different from previous generations when it comes to the goal of homeownership; it is still a huge part of their American Dream. The piece, however, also reveals,

“Saving for a down payment is one of the biggest obstacles faced by first-time home buyers. Dispelling the 20 percent down payment myth could open the path to homeownership for many more.”

Myth #1: “I Need a 20% Down Payment”

Buyers often overestimate how much they need to qualify for a home loan. According to the same article:

“Americans still overestimate the qualifications needed to get a mortgage, resulting in qualified potential buyers not even considering homeownership. Indeed, the Urban Institute report revealed that 16 percent of consumers believed that the minimum down payment required by lenders is 20 percent or more, and another 40 percent didn’t know at all.”

While many potential buyers still think they need to put at least 20% down for the home of their dreams, they often don’t realize how many assistance programs are available with as little as 3% down. With a little research, many renters may actually be able to enter the housing market sooner than they ever imagined.

Myth #2: “I Need a 780 or higher credit score”

In addition to down payments, buyers are also often confused about the FICO® score it takes to qualify for a mortgage, believing a ‘good’ credit score is 780 or higher.

To debunk this myth, let’s take a look at Ellie Mae’s latest Origination Insight Report, which focuses on recently closed (approved) loans.

2 Myths Holding Back Home Buyers

As indicated in the chart above, 50.23% of approved mortgages had a credit score of 500-749.

Bottom Line
Whether buying your first home or moving up to your dream home, knowing your options will make the mortgage process easier. Believe it or not – your dream home may already be within your reach.

Reach out to a real estate professional to assist you in your home buying.

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Slaying Myths About Buying A Home

If you’re afraid you can’t buy a home, lets slay some of those popular myths right here and now and show you that you may be closer to buying a home of your own than you realize!

You don’t have to have 20% for a down payment nor perfect credit! Those are the two biggest myths and as you can see below, they’re just that…myths!

Slaying Myths About Buying A Home

Are you ready to see about buying your home?!
Call or text me at 954-549-3393 if you’re in the South Florida area.
I’d be more than glad to find the ideal home for you!
Or you can visit www.TaraBurner.net to browse the listings and get more info regarding buying a home.