If buying a home is on your 'to do' list in 2023, make sure these top myths aren't keeping you from taking action!
MYTH #1 : You Need 20% Down To Purchase a Home
Homebuyers can take rest in knowing that there are a number of programs available that offer down payments ranging from $0 to 5% down for primary homes. In addition, for primary home buyers you may also be able to take advantage of down payment assistance programs to offset the down payment & closing costs associated with purchasing. Not only that, but as the market is shifting, we are once again seeing sellers offering money in the form of closing credits to assist with covering those back end costs or to buy the interest rate down.
MYTH #2 : You Need Perfect Credit To Purchase a Home
While great credit is helpful to ensure you have access to more loan programs and top tier pricing for interest rates, having less than perfect credit does not mean you are unable to buy. In fact, there are loan programs that can offer approval as low as 580. If you are concerned about your credit have a conversation with your loan officer about what you can do to increase your score.
MYTH #3 : I Am Not Purchasing for 12 Months, I don’t Need A Pre-Approval Now
The most important thing your lender can do for you is make sure you have a strategic action plan to get you in position for the home you want to purchase. Most buyers worry about having their credit pulled too early and that it may hurt their score, however, not applying early may mean that important unforeseen surprise information may delay or impede your ability to buy all together. We see it time and time again, you are ready in your heart, you think you have done everything the online “experts” have told you to do, but upon pre-approval you discover a new hoop to jump through. This can be avoided. Applying early allows us to do a thorough job of evaluating credit, income and assets. Through this we can identify any short falls, items needing clean-up or timing issues. We create solutions with a strategic plan, letting you know what needs to be done to increase the strength of your borrower profile, establish a budget, and a realistic timeline according to your goals.
Homeownership is for everyone, it’s not a matter of if, only a matter of when. Starting the approval process is simple when you have the right team in place. Reach out today to get the conversation started!
- Jenny King, US Mortgage, 843-655-9276