Buying a Home Isn’t as Scary as You Think
Many people put off finding their dream home because of spooky stories about the home-buying process. But the truth is, getting a mortgage loan is easier (and far less frightening) than you might imagine.
Here are five common mortgage myths you can forget about—no tricks, just truth.
Myth 1: A low credit score will keep you from buying a home.
Reality: A strong credit score can help you qualify for a mortgage loan, but a lower score doesn’t automatically disqualify you. Lenders have options for different credit situations, and many loan programs are designed to help buyers with less-than-perfect credit.
Myth 2: You must have a 20% down payment.
Reality: While a larger down payment can reduce how much you borrow, it’s not required. In fact, the median down payment is 14% and first-time buyers average about 8%. Some lending programs allow for down payments as low as 3%, and some don’t require a down payment at all.
Myth 3: A bigger down payment means a better interest rate.
Reality: While putting more money down can improve your chances of approval, interest rates depend on more than just your down payment. Lenders also look at factors like credit score and property usage.
Myth 4: Student loan debt means you can’t buy a home.
Reality: Having student loans doesn’t prevent you from becoming a homeowner. If you have steady income and maintain a manageable debt-to-income ratio (generally below 50%), you may still qualify for a mortgage.
Myth 5: You should always avoid private mortgage insurance (PMI).
Reality: PMI often makes it possible to buy a home sooner, especially for first-time buyers. It allows you to start building equity without waiting years to save a large down payment. Once you’ve built up enough equity, you can usually cancel.
The Bottom Line
Don’t let ghost stories about mortgages keep you from your dream home. Our friendly, local loan officers are here to guide you every step of the way so you’re never in the dark about the next steps on your home ownership journey.
Getting started is easy. You can apply online, or schedule an in-person, phone, or video appointment. Because we keep rates and fees low, you’ll have more to put toward your home, your family, and your future. And there’s nothing frightening about that!