Everybody has dreamt of it: buying their first home. In fact, many young professionals now are saving not only for their retirement but also for this big purchase that will likely cement their status in life. The problem with this giant leap is that it’s surrounded by numerous myths that make it a little too complicated for most people. At worst, they’ve discouraged qualified individuals from taking that next step into becoming homeowners. This robs them of the joy of owning a house and possessing an asset that can prove useful in the future.
If you’re not sure whether you’ve fallen for one of these many myths, it’s worth checking out the most common ones so you can address them. The sooner you get them out of the way, the better your chances of making a good purchase with minimal complications.
Myth 1: There’s A Perfect Credit Score
It’s only right that finances are on top of this list. After all, nothing quite scares people off more than the idea that the few financial mishaps they made in the past have forever barred them from buying their dream house. They have to first work on remedying their credit score and reaching that ideal standard before any lender will even consider them.
While your credit score is crucial in borrowing money, there’s not the make or break of your borrowing prospects. If you’re thinking of buying a home in Texas, why not set up a meeting with a mortgage lender? Credible names in the industry will gladly give you expert advice. It might shock you to hear that different lenders have different standards, and in case your score falls below 580, you’ll still have alternatives.
The 700 score standard is just too high for people at various points in their lives when they decide to buy a home. This is why many lenders don’t mind looking at additional sources like your bill records and rent payment history. If they suffice as proof to show that you’re responsible enough to manage the mortgage, they won’t mind giving you an option that works for them, too.
As for student loans, don’t worry if you haven’t paid them off completely. You’ll want to show prospective lenders that you’re paying it off with little to no delay.
Myth 2: It’s Financially Wiser to Buy a Fixer-upper
Don’t have an impressive budget? A fixer-upper is for you. Well, only if you’re a professional DIY-er or have the connections to make the renovations less costly. Otherwise, you’re looking at living in a less-than-ideal space without a proper clue as to how you’ll turn it into a masterpiece.
Usually, a fixer-upper is perfect for those who know how to spot potential in a run-down home and perform the renovations themselves. Going with it anyway without the expertise to do either can eat at your savings in a way that buying an already-decent home would’ve prevented. There’s also the matter of time, effort, and patience that come with transforming a fixer-upper. Unless you have those three and adequate savings, you’re better off taking the traditional route.
Myth 3: Always Get the Maximum Sum You Qualify For
Your lender will show you the maximum amount of money you qualify to borrow, and it’s often tempting to grab that opportunity. After all, if they say you can pay this off based on your financial records, you probably can, right? It’s worth pausing to get a better picture of how this is actually calculated. Bear in mind that the amount you see could already be half of your gross income, leaving little room for your other obligations. More often than not, this sets you up for failure. What you’ll want is to get a comfortable amount instead and make it work.
Myth 4: It Has to Be Your Dream Home
Why buy it if it’s not your dream home? This big purchase should give you all your desires and leave you wanting for nothing, right?
That’s a great thought, but it’s also unrealistic. The majority of people who are out to become homeowners can’t afford to acquire every detail of their dream house down to a tee. A mature perspective will narrow down what’s important and make it easy to create a priority list. Everything else will be considered a luxury that can come your way in the future, but for now, what matters is meeting your immediate needs.
Myths Give You a Hard Time
Getting the right perspective in terms of house hunting and buying will minimize your regrets after you’ve signed the dotted line. This might not be the process and the output you’ve always dreamed of, but such is the fact of life.