When it comes to buying a home there are common misconceptions that surround the process of both searching and financing a new home, and we're here to debunk those myths.
Most parents don't put a lot of credence in the statements, "everyone is doing it" or "no one does that anymore." They will dig a little deeper and get down to the facts. Interestingly, when it comes to buying a home, there are a handful of common myths that continue to prevail surrounding what it takes to buy a home, which is why it is important to find the facts before preparing for your home search.
One of the most common myths is that it takes 20% down payment to get into a home. While an 80% mortgage might have the most favorable interest rate, it is not a necessity. In fact, in 2018 the median down payment was 13% for all buyers, 7% for first-time buyers, and 16% for repeat buyers (2018 NAR Profile of Buyers and Sellers).
Check out these down payment facts:
88% of all buyers financed their homes last year and younger buyers are more likely to finance their home purchase
Qualified Veterans are eligible for zero down payment, 100% mortgage loans without mortgage insurance
Conventional loans are available with as little as 3-5% down payments.
FHA mortgages have a 3.5% down payment.
USDA mortgages for rural housing have two major products where one does not require a down payment and the other has a 3% down payment.
Maps, based on population numbers, are available to determine if the area you're interested in purchasing in is eligible for a USDA mortgage.
I've come to learn that facts can be instantly verified by searching on the Internet, and common home-buying myths are sometimes able to be debunked in minutes. Although unfortunately, there are a lot of things on the Internet that are questionable and that certainly includes some information on mortgages. Specifically, some loans are not available in certain areas and to a particular persons based on their income and credit history. A website may not provide relevant information for your individual situation. Purchasing a home is a large investment and taking the time to find out the facts is worth the effort!
The best approach, when it comes to buying a home, is to get the facts from a knowledgeable and trusted loan professional before you begin the home search process. I have been in the real estate and mortgage industry for over 26 years and am always excited to help someone comfortably secure their mortgage options when looking to purchase a home. Contact me at (616) 334-3113 or john.homesandloans@comcast.net to determine what mortgage options work best for you, with all the facts at top-of-mind.