Most Common Myths When It Comes to Buying a Home
Buying a home can be misleading. For some, they might think that it would be hard to get their dream house, and thus stay away. For others, they might be so eager to get a home at all costs that they end up with something they actually can’t afford. And for both aforementioned groups, they might be driven by myths about the home buying market. Here are the most common ones:
Myth #1: Owning your home is better than renting
It is perhaps the most commonly held perception of home buying. However, renting might actually be better for some people if, for work-related reasons, they have to move from one place to another. That cannot be done if you are tied into a house, since you would need to stay long enough to break even with the costs of buying and owning your home. This could take up to seven years. So, that means you would have to stay grounded—or potentially suffer a huge loss if you sell the house only a few years after you bought it.
Myth #2: You need to put down at least 20 percent as a down payment
Another commonly held perception, but ultimately unrealistic. Not everyone can afford that.. Luckily, some programs are a lot more lenient. For instance, Federal Housing Administration (FHA) loans offer down payments as low as 3.5 percent. And with Veterans Affairs (VA) programs, you might not need a down payment at all. However, there are certain requirements you would need to meet. For instance, with the VA program, you would need to be a veteran of the U.S. armed forces.
Myth #3: You need good credit
Not always true. Sure, perfect credit can get you the most favorable rates. However, you don’t need a flawless credit score to secure approval for a mortgage loan. Indeed, many lenders consider other factors, such as payment history and level of debt.
Myth #4: Go for the 30-year fixed mortgage; it’s the best deal you can get
That would make lots of sense if you plan to keep your house for 30 years, or for a long period of time. However, it’s best to go for a fixed rate for the amount of time you intend to stay in the house. For instance, if you are estimating a time period of five years, get the fixed rate for five years. Bear in mind that the longer you fix the rate, the higher the interest rate will be.
Don’t let myths get in the way of owning the home of your dreams. No matter what your financial situation, contact the Arizona Mortgage Brokers at Marquee Mortgage. With access to hundreds of tools and financing options, the brokers at Marquee Mortgage can help you find the perfect financial solution for your needs. Call us today for a free consultation and let the team at Marquee Mortgage work to turn financing your dream home into a real possibility.