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5 Scariest Home Buying Myths: Busted

Oct 21, 2020

Don't Believe Everything You Hear

Scared to swallow watermelon seeds ‘cause a watermelon will grow in your stomach? Maybe you’ve been extra careful not to swallow your gum or else it would be stuck for 7 years. Or what about waiting 30-minutes after you eat to swim? We all believe in small myths that influence decisions we make everyday. 

We recognize that the home buying process is cited as one of the most stressful things someone will go through in their lifetime. With little-to-no basic education about the home buying process, no wonder there are so many myths surrounding it. 

Well, look no further! We’re breaking down 5 of the most common home buying myths so you can finance your dream home without all the stress. 

Myth #1 - A 20% Down Payment is a Must

Nope. This myth comes from the interest of the banks. A 20% down payment acts as insurance in case a borrower were to default on their mortgage. Over time, the mortgage industry has developed many programs and products that assist with down payments and make it more affordable upfront. 


FHA loans, or loans backed by the government, require as low as a 3.5% down payment, conventional loans start as low as 3%, and specialty VA loans offer assistance to military families as well. USDA loan products offer 100% financing for eligible borrowers and properties. There's a variety of options available for any situation.


With rising student loan debt and the increase in home prices, saving for 20% can feel nearly impossible, but the good thing is that it’s not the rule.


Myth #2 - I Need Perfect Credit

No again. Who even has perfect credit?! While your credit score plays a big role in determining your loan amount and rate, most lenders require a median FICO score of 620 with some loan programs dipping lower. 


Along with a lower minimum credit score, lenders can use other forms of credit as well. This could be past rent and bill records or your student loan repayment history.


For more information on credit and the home buying process, check out our blog on Understanding Credit here


Myth #3 - Renting is Cheaper

Definitely not! Paying rent is actually just paying the mortgage of the landlord (plus some). Most people will dedicate 30% of their monthly income to rent. Add in utilities, insurance, car payments, groceries, etc. there’s little left to be put in savings.


Buying a home is a big purchase for sure, but it is also an investment. Paying your own mortgage allows you to build equity, which contributes to your wealth, and your ability to buy a new home down the road. If your home value has increased over time, you will eventually be paying less in mortgage payments than you would be renting for years.


Myth #4 - It's Not The Right Time To Buy

So, when is it the right time? Some will have you believe that you have to buy in a specific season or month, others will say it’s all about the rates. The truth is, it’s all about you!


The best time to buy is whenever you feel the most confident and ready. Buying a home is a HUGE decision! The weather outside or the small change in a percentage shouldn’t stop you from moving into your future home. Make a plan for how you’ll save up, find trusted professionals to guide you along the way, and find the right time for you.

Myth #5 - I Don't Need Help

Yes, you do! You can find everything online today. You could have the idea to start a business one day and be up and running in the next all because google had every answer. That’s not the case with buying a home! 


While you should definitely do your research, including professionals who know the process inside and out takes most of the pressure off of you! 


Finding a Real Estate Agent and a Loan Officer you trust is a must! Working together, these two professionals can help you find the home of your dreams, a budget that works for you, and a speedy process with as little stress as possible.


BONUS MYTH - All Lenders Are The Same

Absolutely NOT! Just like you will shop around for the right home for you, you should shop around for the right lender for you too. 


Lenders vary in many ways, from product options to service, speed and technology; and finding the right fit is imperative to finding the home of your dreams. A lender should want to know all about you and your goals, not just your budget.


We hope we have busted some of the home buying myths keeping you from buying your dream home. If you are ready to take the next step, contact us today!

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Q1 Recap

By Mikaylah Collins • 12 Apr, 2023
We've begun to see signs that the Spring Market is here and could be robust! Here is what we know: According to NAR, home sales were up 14% in February over the previous month which marked the biggest monthly increase since July 2020. While March results are not yet published, the mortgage industry saw an increase in purchase applications for the 3rd straight month; a great sign for the housing market. Driving much of this activity is the stabilization of rates in January & February and lower interest rates this past month. We’re starting to see signs of a slowing economy and the markets are now pricing this in. This week we saw the 10-yr Treasury drop under 3.4%, a level it has not reached for quite some time and the lowest it’s been since September 9, 2022. This is great news for consumers as decreasing rates mean more home affordability. Over the past year, most markets have seen home prices stabilize if not even decline, albeit by a very small amount. This stabilization was still a relief for homebuyers as it helped to offset higher interest rates. As rates continue to decrease, we would expect home prices to again increase due to demand increases. In addition to increased demand, there is still a shortage of homes for sale nationwide and that will continue to worsen as more and more homebuyers enter the market.  So what does it all mean? Now is a GREAT time to buy a home! Rates and home prices are stable, there is not as much competition as there will be when rates do decrease, and buying a home is still extremely affordable for most. Once rates fall, we will likely see home prices rise and the competition for the shortage of homes will increase alongside it making the window of a buyer-dominated market very small.

Q1 2023 Market Outlook

By Sarah Rubin • 10 Feb, 2023
We are well into Q1 and feel confident saying that the market appears to be stabilizing. Before we start looking forward, let’s quickly look back at the end of 2022.

Finding The Right Listing Agent For You

By Sarah Rubin • 15 Dec, 2022
Buying a home is a huge investment and one we talk about often - BUT the flipside is that you have an opportunity to cash in on that investment when you’re ready to sell your home! While you do have the chance to cash-in, a lot more work goes into selling a home than you might think! If you are considering selling your home, working with a listing agent will help you market your home, negotiate with potential buyers, work through paperwork, and ultimately close on your home! So what is a listing agent? In its most basic terms, a listing agent is a real estate professional who represents the seller in a real estate transaction. The listing agent lists the home for sale and works on behalf of the seller to sell the home at the best price and terms for their client. Listing your home is a BIG deal and it is not a place to try and DIY. But why can’t you just grab a sign at Home Depot and try and sell yourself? Well, there are lots of reasons some of which include: Professional consultation: A listing agent will walk you through each step and tell you what to expect along the way! They should understand the specific community you’re in and the current market environment and will help you determine a competitive but realistic asking price for your home. Marketing and selling your home: Your listing agent will list your home on the multiple listing service (MLS) in order to better market your home to potential buyers. They also can make staging recommendations and hire a photographer to best show off your home and its features. They’ll schedule house showings, and can be present to answer any questions. Communication and negotiation: Communication is key to both buying and selling a home in order to minimize stress and misunderstandings. Listing agents take care of this important task, by staying in touch with interested buyers and their agents, fielding questions, handling paperwork, and negotiating the final sale price and terms. Recommendations: Seasoned listing agents might come with a list of professionals who they have worked with in the past that they enjoy working with in order to make the selling process smoother for you! Some of these professionals include: real estate attorneys or title companies, inspectors, stagers, those who specialize in home improvement AND of course trusted Loan Officers. How do I find the right listing agent for my situation? In order to find the right listing agent for you, make sure your agent is licensed and has experience, references, and a professional website where you can learn more about them and their qualifications. Most real estate agents work with both buyers and sellers, but some might specialize in one or the other. Once you find a few agents through referrals or online research, meet with them in person to ensure they meet your needs and work well with your personality. It is also important to ask questions during your meeting with them and it’s imperative that you determine what you’re looking for in an agent so you make sure you are happy with the product being delivered. Selling a home can be stressful, especially for first-time sellers. A listing agent can help by taking on some of the burden and providing the information and resources needed to help sellers make informed decisions. We work with agents on both sides of the transaction – if you have any questions or would like a recommendation for an agent in your area, please reach out to us!
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