Myths About Home Buying
Buying a home is one of the most important steps you will ever take. What this means is that you will get a lot of advice about the process from friends, family, co-workers and possibly even perfect strangers. Some of this advice may be useful, but much of it could be less-than-helpful or even downright wrong. That is because there is a lot of misinformation about the home-buying process out there. We have put together four of the most common home buying myths—and some truths that you can use to “bust” them.
- Saving a Huge Down Payment is Necessary – While having a bigger down payment is always better, there are lending options like FHA loans that can get you in a home for mere thousands—allowing you to keep your savings intact. There are also other programs such as USDA loans and VA loans that offer up to 100% financing, if you qualify.
- You Need a Perfect Credit Score to Get Approved for a Home Loan – While the credit score required for approval is higher today than it was before the “bubble” burst in 08/09, it has dropped in the past few years. According to Keepingcurrentmatters.com, in 2015, a 723 is the average FICO score of all approved loans and a 689 is the average score of approved FHA loans.
- Renting is Cheaper – The cost of renting a home or apartment is going up. Plus, you are protecting the money you put into your home for the future. Spending money to buy your home only makes sense.
- Interest Rates are Too High – Yes, interest rates have gone up a bit from what they were a few years ago. However, they are still much lower than they have been in decades past. Now is the time to lock-in and purchase.
With all of the misinformation that exists when it comes to buying a house and obtaining financing, it is more important than ever to work with a lender that knows the business and that will put your needs first. Here at Liberty Financial, we will go the extra mile for you. Call us today with any questions, comments or concerns and allow us to help. Our goal is to make things as easy as possible for you.