Rent vs. Buy: Homebuying Myths

As you make your move from renting to homeownership, it’s easy to be overwhelmed by the amount of information available on homebuying and home financing – as well as the amount of misinformation. 

Here are some common myths regarding home financing you may hear as you get started: 

Myth 1: Perfect credit is required 

While credit scores are definitely an important factor, perfect credit isn’t required to purchase a home. Requirements will always vary when it comes to home financing, but there can still be loan options available to you and your personal situation. 

Myth 2️: A down payment of 20% is required 

You rarely need a 20% down payment to buy a home. There may be multiple options available to you, from programs that will work with 5%, 3.5% or 3% down payment, to closing costs that can sometimes be paid by lenders, sellers, or come from gifts or grants, there are several solutions that may be available to you. 

Myth 3: The lender with the lowest interest rate is always the best option 

When choosing a lender, it’s natural to focus on interest rates, especially in the current market, however it’s also essential to consider origination fees and a history of customer service. An unresponsive lender can result in a difficult transaction and a potential delayed closing. 

To learn more about the realities of home financing and to get started on the homebuying process, contact us today – our HUNT Mortgage team will provide any information you need, work with you to determine what types of loans you qualify for, and keep you informed every step of the way.