There are lots of reasons why folks think they cannot buy a home when they “wish” they could. Today’s Blog will focus on the top two reasons I hear supported by a recently released report from Freddie Mac.
#1 I have to have a 20% down payment to buy a home…
Not true. In fact, I can use math to show you how a lower down payment might even be better for you financially in short- and long-term views. Along with math, there are programs for first time home buyers, buyers that are upsizing or down sizing their homes, buyers that are purchasing rental or investment properties, buyers looking for second homes and even buyers looking for luxury properties.
So how did roughly 25% of all renters and current homeowners get to the point where they believe a 20% or more down payment is required? I have no idea but it’s not true…
#2 I have to have a 780 or higher credit score to buy a home…
Not true. In fact, without any credit history at all, a mortgage consumer might not have a credit score at all but can still qualify for a mortgage to buy a home (and with less than 20% down payment). For sure there are additional requirements the lower the credit score goes but if everyone had to be perfect to get qualified for a home loan, well then how many of you can also walk on water???
Here’s a blog from earlier this year about credit scores. Folks…look out for yourselves. There are 9,382 steps in qualifying for a home loan. Call me…I know what’s going on for real estate’s sake…
Bottom Line: Just because you can buy a home with lower down payments and credit scores than you might have thought, it doesn’t mean you should. Also, because you have what it takes to qualify, it’s a lot of money. Are you doing what’s best for you and your family or are you self-prescribing your mortgage? It’s kind of a big deal. Consult with a true professional before injecting financial poison into your cash flowing veins. I know a guy…
