For many prospective home buyers, saving for a large down payment is the biggest barrier to achieve the goal of home ownership. Part of the challenge for those planning to purchase a home is the perception that they need to save for a substantial amount. Based on a recent survey by Keeping Current Matters, many individuals thinking about buying in the next three years, nearly a third of those think they need at least 20% down.
Myth #1: I need a 20% down payment in order to buy a home.
Buyers are overestimating what they need in order to qualify for a home loan. There are many programs out there that require little to no down payment depending on each individuals situation.
Myth #2: I need a credit score of at least 780 or higher.
Many either don’t know or are misinformed about the credit score process when qualifying a buyer. According to a recent study by Keeping Current Matters, 52.4% of approved mortgages had a credit score of 600-749. Talk to your local mortgage lender in regards to credit score concerns or questions.
Overall, purchasing a home is more within arms reach than most people think! With affordable down payment options, applicable credit scores and lower interest rates- now’s the time to purchase a home! If you’re wanting to get started but not sure who to contact, reach out to one of our knowledgeable agents and they can get you in touch with a lender today.