Although the internet can be a great resource for a variety of information, a lot of that information is incorrect. One of the most important and expensive decisions in your life, home buying, tends to circulate a lot of misinformation. Most of that misinformation is in regards to how much of a down payment you need or what your credit score needs to be. Let's go over the real facts about buying a home and knock those myths out, so they don't hinder your ability to purchase!
Though it may come as a surprise, you don't need a perfect credit score to purchase a home. Traditional bank lenders will work with credit scores as low as 640, but your agent can also get you connected with local lenders that accept credit scores as low as 580. Although there are other required stipulations to qualify for the loan, you don't need a perfect score in the 700's or 800's to get approved for a mortgage.
You don't have to sell an arm and a leg to be able to purchase your dream house. There is a huge misconception that you need to pay a minimum of 20% down to buy. That information is outdated. These days, there a large variety of loan programs that only need an average of 3-5% down. Based on your income or military status, you may even qualify for mortgage programs that require 0% down. Although you'll expect to pay an additional 3% in closing costs, which is separate from the down payment, this is still significantly less that 20% of the purchase price. If you're in a buyer's market, you may even be able to negotiate for the closing costs to be covered by the sellers.
Be sure to connect with us, Your Real Estate Advisor, to ensure you have the right facts. Don't let online myths persuade you into thinking you can't qualify or afford to buy a home. There are a variety of programs to help you get into your dream house. Contact us today so we can discuss all the options of helping you acheive your goal of homeownership!
Myra R. McCaskill Crenshaw, CPA
Real Estate Consultant & Economist
Realtor®/Real Estate Affiliate Broke
901-878-9799 - Direct
"Together Achieving the EXTRAordinary"
Our Value Proposition - As a Certified Public Accountant & Realtor, you can trust I will guide you through the real estate process with sound business judgment & attention to detail to help you achieve your goals and dreams. As your trusted financial and real estate advisor, I will provide you with the highest quality real estate experience!"