If you have yet to purchase your first home, you may be holding back because of myths you have heard about buying homes. While there are legitimate reasons why you may not be ready to buy your first home, don’t hold back because you buy into any of the following myths.
Myth #1 – You have to have 20% down.
While you might want to have 20% down to reduce your monthly payment and avoid paying private mortgage insurance (PMI), it is entirely possible to purchase homes with a small down payment, even none at all, in some cases. It may be ideal to put 20% down, but if it would be years before you could save up enough, it may be better to get started and put your monthly housing budget into your own home instead of someone else’s through continuing to pay rent.
Myth #2 – You must have perfect credit to buy a home.
There are credit scores that take home ownership off the table, but there are options for those with marginal credit scores. Your best bet is to meet with a mortgage broker to discuss your financial situation rather than just assume you don’t stand a chance.
Myth #3 – Buying homes isn’t really a good investment.
Building equity in a home is always going to be a better investment than paying rent to someone else so they can. When you buy a home, you are essentially paying yourself. Also, consider that if you continue renting, your housing costs will continue forever, but if you buy a home, eventually it will be paid off and you won’t have that monthly expense any longer.
The important thing when considering buying homes is to have the right professionals assisting you. Obtaining real estate services is the best way to go, particularly with your first home purchase, so you don’t make any missteps that result in headaches you could have avoided. If you are ready to look at property listings in the Hickory, North Carolina area, turn to us at Thornburg & Associates, Inc. We have been a leader in the Catawba Country real estate market for over 35 years and are happy to assist you with debunking common myths about buying homes and get you on the road to securing the home of your dreams.