First-Time Buyer Mortgage Myths
It’s an indisputable fact that buying a home today is a complicated process. It can be especially intimidating for a first-time buyer. Also, there is a severe shortage of inventory in the category of entry-level homes making the transition into homeowner a challenge. The process is not as simple as searching for a house, finding one that suits you, making an offer and going to closing.
Although these are indeed the basics, it is not the complete picture. There are a lot of pesky details that are not understood and become fertile ground for the seeds of mistaken beliefs. The topic that seems to represent the most confusion is obtaining a mortgage. Let’s take a closer look at some of the most common myths about mortgage eligibility.
I Need a 20 Percent Down Payment
No, you don't. Although a buyer needs to put 20 percent down on a home to avoid paying Private Mortgage Insurance, most can buy a house with much less money. When you look at a snapshot of all buyers, the medium down payment is 10 percent.
You can find lenders who will approve mortgages as low as 3 percent...