First Time Home Buyers
IGNORE THESE HOME BUYING MYTHS!

First time home buyers are often afraid to begin the home buying process, because of myths they’ve heard from others. Proper education will eliminate those myths! Buying a home is an important step to building a secure financial future. But because of some common misconceptions, many people believe homeownership is out of their reach. Don’t let these negative myths keep you from the personal and financial rewards of homeownership.



MYTH # 1:


“I CAN’T AFFORD A DOWN PAYMENT.”

In the past, first time home buyers were required to put up a 20% down payment, but not today. In fact, 7 out 10 first-time home buyers make a down payment of 5% or less and some first time buyer programs offer NO MONEY DOWN! This is definitely a home buying myth!



MYTH # 2:


“I HAVE LESS THAN PERFECT CREDIT, SO I CAN’T GET A MORTGAGE.”

Your credit is very important. Good credit is useful, because it gives you “buying power.” But, more importantly, good credit shows your “integrity.” Even if you’ve had credit challenges (due to no fault of your own) you can still operate in integrity by cooperating with your creditors.A less-than perfect credit history doesn’t have to stand in your way of reaching your homeownership goals. There are mortgage companies and products that have helped thousands of individuals move beyond credit challenges into homes of their own.

With changing times in the credit market, it’s important that you get your scores up as high as possible to ensure better chances for loan approval. If you need help, please work with a legit, non-profit organization or program dedicated to helping individuals develop discipline to live within their means and pay their bills on time.

If you have credit challenges, commit to the process of raising your scores. Be pro-active. It doesn’t take very long to see increases in your credit scores if you are handling your credit responsibly. Despite, what you hear…there are no quick credit fixes. Be aware of advertisements that claim to clean up your credit and give you a spotless score. You can it! Don’t give up…slow and steady wins the race!



MYTH # 3:


“IT’S LESS EXPENSIVE TO RENT.”

In fact, there’s a good chance that your monthly payments will be lower than they are right now. And unlike rental costs, your monthly principal and interest payments will stay the same for the life of a fixed-rate mortgage. Moreover, as a homeowner, you’ll be building equity in your home, which is wealth that you can use to achieve your financial goals!



MYTH # 4:


“THE LOAN PROCESS IS LONG AND COMPLICATED.”

We want to make buying your first home as easy as possible. Your mortgage consultant or loan officer will help you through each step of the financing process, so you’ll NEVER have to go it alone.

The key to having an expeditious loan process and approval is to be ORGANIZED with your DOCUMENTS! Start keeping all of your documents in a separate folder (i.e. pay stubs, w-2’s, lease agreements, etc). This ALWAYS helps to speed up the process. Get a checklist of all the items you will need to show the lender. When your lender asks for them, you will have them handy versus having to wait at the mercy of someone else to give you a copy.

Remember, organization is the key. Get organized, then stay organized!



MYTH # 5:


“I WON’T BE ABLE TO MAKE MY MONTHLY PAYMENTS.”

With a loan that fits your budget and your financial goals, your home will be a POWERFUL tool in building a secure future for you and/or your family. If you are paying your rent on time each month...why wouldn't you do the same with your mortgage payment? You will!

First time home buyers have to be responsible and take control of "their" situation. Don't allow these "adopted" myths to become your way of thinking. Yeah, these myths are a reality for some, but NOT for you! Interpreting these home buying myths as truth will paralyze your pursuit of homeownership.

First time home buyers...Don't believe the HYPE!

KEEP MOVING FORWARD!


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