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Home Federal Blog
3 Common Misconceptions of First Time Home Buyers
(And How to Become a Homeowner Sooner Than You Think)
Purchasing a home is a big deal – especially when it's your first home. Even if you're just in the "planning stages" of becoming a first-time home buyer, you're probably already feeling overwhelmed with all the unfamiliar jargon (“What are closing costs?!”) and infinite amount of contradicting information online (“Do I need a down payment or not?!”) about the homebuying process. So, let’s start at the beginning: the financing of your first home purchase.
So You're Thinking About Buying a Home...
Regardless of if it’s your first mortgage or your fifth, your first step should be consulting a mortgage lender to discuss home financing. A mortgage lender can help explore your options and pre-qualify you for a mortgage loan. However, many first-time buyers tend to attempt to pre-qualify themselves using what’s available from friends, family, and/or the internet first, before ever sitting down with a loan officer.
Do You Think You Can Afford Your Own Home?
While the internet offers a lot of great information about home loans (and a lot of potentially bad information), it’s difficult to figure out which information is relevant to your own personal financial situation, particularly when you’re a newbie at home financing. Because of this, there are many misconceptions when it comes to buying your first house that are keeping first time home buyers from becoming first-time homeowners. You may already be thinking “There’s no way I can afford to buy a house right now!” because of one of these misconceptions and, in turn, you never make that appointment to meet with a mortgage lender. Want to know what our lenders see as the most common misconceptions? We can narrow it down to three.
The 3 Most Common Misconceptions of First Time Home Buyers:
1. "I have too low of credit score..."
This first misconception could probably be considered the biggest “strike out” when it comes to a first-time homebuyer pre-qualifying themselves. We have news for you: you don’t need a 700+ credit score to buy a home. While yes, a good credit score will play in your favor when it comes to getting approved for a mortgage loan, we have loan options created specifically for those with lower credit. (Worst case scenario, if you do need to build your credit – Home Federal has options that may help build your credit quicker than other credit-building alternatives.)
2. "I don't have enough for a down payment..."
This misconception may not be straight from the internet – your parents have probably told you over the years that 10-20% is necessary to have saved for a down payment on a house. But you should know that times have changed! While having a 10%+ down payment is great, it is not required for all home loans. Believe it or not, we have loan options that require little to no money down! Furthermore, we have access to many down payment assistance options for first-time home buyers who qualify.
3. "I don't make enough money..."
While this misconception is generally tied with the previous one, there is no “magic number” when it comes to required income for a home loan. Many first-time homebuyers think they can’t even get approved for a mortgage with one income. However, there are many loan options created specifically for those with lower incomes. The only way to know if you make “enough” is to meet with a mortgage lender!
Do any of these thoughts trigger déjá vu for you?
If you’ve been thinking any of the three above, it’s time to meet with a mortgage lender at Home Federal – especially with their access to Welcome H.O.M.E. (Home Ownership Made Easy), Home Federal’s exclusive package for first-time home buyers – so they can help debunk these pre-conceived notions you may be having.
Become a Homeowner Sooner Than You Think
We mentioned the word “options” above several times. That’s because Welcome H.O.M.E. is chock-full of them. With so many options, our loan officers are better equipped to get you into your first home sooner than you think possible. Don’t believe us? It doesn’t cost you anything to meet with one of our mortgage lenders and explore your options… you might be surprised what you qualify for!
Wouldn’t you hate to wait until you’re “sure” you’re ready, only to find out you’ve could’ve bought your first home years ago? Find your local lender and contact them for an appointment today. It’s the only way to find out how you can become a first-time homeowner sooner than you think.