Information and advice for first-time homebuyers is everywhere. Unfortunately, many of the most commonly accepted truths about buying a home are either outdated or false. Here are some of the biggest myths about home buying to help you understand the facts.
Myth: You Can't Buy a Home With a Bad Credit Score
It is possible to qualify for a mortgage and buy a home even with a low credit score. Luckily, credit scores are just part of what lenders consider when you apply for a loan. While a high credit score might equal lower interest rates, a low credit score does not necessarily mean rejection.
There are specific loans available for home buyers with lower credit scores. Loans provided by the Federal Housing Administration (FHA), for example, are excellent resources regardless of your financial situation.
Myth: A 20% Down Payment Is Always Required
While it's a common assumption that your down payment will always be 20% of the purchase price, the minimum requirement is often much lower. It depends on personal preference and the terms of your mortgage. Many lenders are flexible with down payment sizes but will adjust other factors like interest rates accordingly. A higher down payment often means lower rates and less money to borrow, but there are plenty of options available for those wishing to pay less up front.
Myth: Mortgage Pre-Approval Doesn't Matter
One of the most important things to do before buying a home is to get pre-approval from a mortgage lender. While not always required, pre-approval benefits you in several ways. One advantage of pre-approval is that you go into your home search knowing exactly how much home you can afford. Another benefit is showing sellers you're financially responsible and less likely to back out on a sale due to lack of financing.
These are only a few common misconceptions about buying a home. While there is a wealth of helpful information and guidance for first-time homebuyers, it's always worth your time and money to do some extra research to determine what will work for you.
About the Author
Judy Szablak
With over 30 years in the industry, Realtor Judy Szablak has been on national television for her real estate expertise on the HGTV Network, featured on Martha Stewart Living Radio "Morning Living” , NPR radio as an expert real estate panelist, It’s Relevant News channel, and quoted in the Wall Street Journal for her in depth knowledge of Fairfield County Connecticut real estate.
She was also on the local NPR radio station (WSHU) as a Fairfield County CT real estate expert. Judy has provided multiple online respected news sources with her real estate expertise including The Daily Easton, The Daily Weston, The Daily Fairfield, The Daily Stamford and The Daily Greenwich, as well as in print in the New York Post. She is a weekly Real Estate Columnist for WestportNow.com, another real estate column "Real Estate With Judy” is syndicated through Hearst CT Media Online and seen in The Connecticut Post, The Danbury News-Times, The Stamford Advocate, The Greenwich Time, The Hour, Fairfield Citizen, Westport News, Darien News, New Canaan News and the Wilton Villager.
Judy is also the author of the book, The Art of Buying or Selling a Home, available at all major book retailers. Additionally, Judy has been nationally recognized in a number of national real estate trade magazines, some with distribution to over 1 million members. She was featured in Real Estate Today as early as 1994 for her commitment to, and implementation of technology in real estate. Judy appeared in the Certified Residential Specialist Magazine, as she provided advice on marketing strategies and ethics in the article titled "Marketing Makeovers.”
Judy was also featured in REALTOR® Magazine, regarding image enhancement for Realtors. She was again featured in REALTOR® Magazine, in an article on "Achieving Flow” and operating at optimal peak performance. In another article in the same publication, Judy offered guidance to fellow real estate professionals as she explored the topic of implementing and maintaining personal websites. She has appeared in The Council of Residential Specialists Magazine, which featured her ideas regarding technology. Additionally, Judy authored an article on marketing and technology for the Certified Residential Specialist (CRS) Online Magazine. On two occasions, in 2015 and 2017, she appeared as a featured agent in Top Agent Magazine. I have a few other websites- www.TheCtrealtyBlog.com www.CtHomesAndRealEstate.com www.BestWestportHomes.com www.ThePetitePowerhouse.com www,SzablakConsulting.com
