4 Common Home-Buying Myths

As a first-time homebuyer, it can be overwhelming to navigate the real estate market. With so much information available, it's easy to fall into the trap of believing common home-buying myths. Here are four common home-buying myths debunked that can help you make an informed decision.

Myth #1: You need a 20% down payment to buy a home.

Many believe that you need a 20% down payment to qualify for a mortgage. While having a large down payment can help you secure a lower interest rate, it's not a requirement. Several loan programs allow for a lower down payment, such as FHA loans, which require as little as 1% down payment.

Myth #2: You need a perfect credit score to buy a home.

While having a good credit score is essential, it doesn't have to be perfect to qualify for a mortgage. Many lenders offer loans for individuals with credit scores as low as 580. However, keep in mind that a low credit score may result in a higher interest rate.

Myth #3: You can't buy a home if you have student loan debt.

Many believe that having student loan debt disqualifies them from buying a home. However, having student loan debt doesn't make you ineligible for a mortgage. Lenders will look at your debt-to-income ratio, which compares your monthly debt payments to your income. As long as you have a stable income and manageable debt, you can still qualify for a home loan.

Myth #4: You don't need a real estate agent to buy a home.

While it's possible to buy a home without a real estate agent, it's not recommended. A real estate agent can provide valuable insight into the local market, negotiate on your behalf, and guide you through the home-buying process.

In conclusion, don't let common home-buying myths deter you from achieving your dream of homeownership. With the right information and guidance, you can make an informed decision and find the perfect home for you.