2 Myths Holding Back Home Buyers

Dated: 02/03/2020

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Buying a home is a huge commitment and one which should be considered carefully before undertaking. Not only are you committing to years of the mortgage, but you are also putting down roots in a community for some period of time. As more and more Millennials consider the pros and cons of buying their first home, they are often confronted with a barrage of information containing half-truths and outright lies. Here are 2 common myths that cause my potential buyers to hold off buying a home.

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Myth #1 – You have to have a 20% down payment.

While it’s true that most 0% down loans have disappeared after the mortgage meltdown last decade, it’s also true that there are some very attractive loan options that do not require a 20% down payment. Although loans with less than an 80% loan-to-value do require private mortgage insurance, which adds cost to the monthly payment, there are many options available with a lower downpayment; many lenders offer conventional loans with 5-10% down payments, FHA loans for first time home buyers require only 3.5% down payment. Qualified veterans can also use the VA loan program to purchase a home with 0%.

Myth #2 – You need great credit

While it is certainly helpful to have a high FICO score and great credit, their loan programs available for buyers will lower scores. In fact, a survey was done last fall indicated that over 50% of new loans in the past year were for people with FICOscores in the 600-649 range. The main point is that buying a home is a great investment in your future, both financially and personally. Before you assume you aren’t ready to buy a home, talk with a lender and learn your options. Don’t let these myths keep you from anew home.

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Jason McLaughlin

Jason has lived in the Golden and Arvada area for more than 25 years attending Golden High School and then later gaining a Bachelors of Science Degree in Organizational Leadership and Emergency Manage....

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2 Myths Holding Back Home Buyers

Buying a home is a huge commitment and one which should be considered carefully before undertaking. Not only are you committing to years of the mortgage, but you are also putting down roots in a

Read More