3 Myths That Keep You From Purchasing A Home
Jos Ross • August 29, 2020
3 Myths That Keep You From Purchasing A Home
I have come across a few myths that people believe when it comes to home buying. Let’s talk about it:
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Myth 1: You have to have a perfect credit score to qualify for a home
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This is false! A lot of financial gurus will encourage you to reach the 800 club but for what? Just to have a perfect score? Well, here’s a secret: most first-time home buying programs will accept you with a score as low as 620. Now i’m not saying aim to stay there. I personally think getting to and maintaining a 700+ score will help you not only qualify, but stand out as a top applicant for all types of loans (FHA, Conventional and VA loans included).
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Myth 2: You should have a ton of money saved
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False. You don’t need to have a million dollars or even $50,000 saved as a first-time homebuyer. It depends on what type of home you plan to buy and what program you plan to participate in. In fact, there are programs like NACA that will cover your down payment BUT you WILL need to have something saved in case of repairs and other costs (inspections, earnest money deposit etc.). Do your research on sites like Zillow, Redfin and Movoto to find out what is in your area.
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Myth 3: You must get a traditional loan
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False! While most homebuyers opt for the traditional loan, there are other options to purchasing a home such as seller financing. Check out episode 3 where Sierra and I talked about her experience of buying her first home via seller financing. It’s a good one!
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Also, sign up for my Free Homebuyer Goals Challenge
where we will dive into what you need to do financially to prepare for your home purchase.
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Which myths have you heard or did you originally believe? Comment below!
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