The process of home buying is overwhelming and can be confusing if you’ve never done it before. While friends and family can be excellent sources of advice, it is useful to do your own research as well so you can read about some of the common myths regarding owning a home that are circulating.
The first myth is that you need an absolutely perfect credit to buy a home. The majority of homebuyers have a score in the range of 600 to 700. A better credit score opens up more opportunities and may give you a lower interest rate than if you have poor credit, but it’s not the only factor to concern yourself with.
Another common myth that needs to be debunked is the idea that owning a home costs more than renting. Depending on the market, it may be a smarter decision to buy since you’re building equity in your home and getting tax advantages by owning instead of handing money over to another homeowner, which is the case when renting. The value of a home also tends to increase over time.
When debunking homeownership myths it is especially important to recognize that lenders will not share your personal information with third parties. You may be hesitant to apply for a mortgage or talk to anyone at a bank if you have any belief that your personal information will be shared, but there are laws that protect you and prevent your information from being distributed for any reason without your consent.
You may also be hesitant to apply for a mortgage if you think that the process is too complicated or will take too long. As long as you use your resources carefully and plan ahead, the process doesn’t need to be this way. Don’t be afraid to ask questions when you’re working with a loan officer or even with the realtor, since knowledge is power.
Another common myth that is floating around is that lenders enjoy making you wait. Lenders benefit when you are approved for the mortgage, so they will be eager to help you get approved but need to review your application completely to ensure they don’t miss any small details. The process will go much smoother if everything is accurate and any concerns, both large and small, are addressed before diving head first into the process of buying a home.