Borrowers who are purchasing their first homes and applying for their first mortgages may find themselves wading through a mire of myths and misconceptions. If you believe in these myths about buying your first home, you might miss opportunities or have a difficult time avoiding pitfalls.
Below, we correct some common misconceptions about buying your first home to help you get started on the right track.
3 Myths About Buying Your First Home
- Myth: You have to save up for a 20% down payment.
Fact: The 20% down payment is considered to be “standard” for mortgages by so many people that quite a few borrowers shopping for their first homes have no idea that it is possible to buy a home with a lower down payment. Depending on your qualifications and the type of lending product you choose, however, you might be able to move into a home with a significantly lower down payment or no down payment. In particular, you should look into government-backed loans like FHA, VA and USDA mortgages. But you may also be surprised what can be possible with a conventional loan in some situations.
- Myth: You cannot buy your first home if you have student debt.
Fact: You can buy a home if you have student debt. Many prospective homeowners talk themselves out of shopping for a home until they have paid off more or their student debt or even all of it. But this is unnecessary. People purchase homes who have student debt every day.
- Myth: You have to have a perfect credit score before buying your first home.
Fact: Your credit score does not need to be perfect to purchase a home. In fact, the same government-backed loan products we discussed with respect to down payments (FHA, VA and USDA) all feature flexible credit qualifications.
Buy Your First Home in Farmington Hills or Beyond
We are based in Farmington Hills, Michigan, and can help you purchase your first home anywhere in MI or 15 other states. We can answer any questions you might have about down payments, credit, and debt, and help you assess your eligibility for a range of loan products. To purchase your first home quickly and easily, please call us today at (248) 788-0800 to schedule your consultation.