If you’d like to buy a home, but feel like it’s just not something you can actually do, there’s two things you should know. One — you’re not alone. And two — you might be wrong.
There are certain misconceptions that prevent many people from pursuing homeownership. But the truth is, your dream of buying a home may be closer than you think.
So the question is, what, exactly, are those misconceptions and, more importantly, what’s the truth?
“I don’t have enough money for a down payment.” Many would-be homeowners shy away from buying a home because they don’t have 20% saved for a down payment. But there are plenty of ways to buy a home with less cash down, including grants to subsidize your down payment, or mortgages with lower down payment requirements, like FHA loans.
“I can’t afford a mortgage payment.” To be clear, you should never buy a home that has a mortgage payment you can’t afford. But in many places, rent can be more expensive than a mortgage payment, and if you live in one of those places, buying can actually save you money. In addition, if you’re buying a home for the first time, you may qualify for certain first-time homebuyer programs that can make your mortgage payment more affordable.
“I don’t have a good enough credit history to get a mortgage.” Many people believe that you need perfect credit to buy a home. But there are options for buyers with less-than-perfect credit, like seller financing, private lenders, or lease-to-buy programs. And if you’re set on a traditional mortgage, there are steps you can take to improve your credit score and increase your chances of approval, like paying down your credit card balances and paying your bills on time each month.
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