Let’s Get Real
Are You Sure About That?
Contrary to popular belief, buying (and selling) a home is not a mystery game of tricks and secrets. When talking with people who are contemplating buying a home, I’m often taken aback by the misinformation that shapes so many attitudes and beliefs about buying a house. A couple myths off top?
Myth #1: You need a 20% down payment.
The twenty percent down payment myth is often touted by people who don’t know about the variety of programs and loan products available to new and first-time homebuyers. There are loan programs that can get you into your first house with down payments as low as 0% - 3%, as well as down payment assistance programs that can help you close the gap between what you have and what you need.
Myth #2: You have to wait until the “perfect” time.
The housing market can be unpredictable and finicky as it responds to changing costs of materials (for those looking to build a home), fluctuating interest rates, and supply-demand trends. There is no “perfect” time to buy, but there are things to consider when deciding to enter the housing market. Sometimes there are more houses available during a particular season; sometimes rates favor home purchases during a specific legislative session. Talking to a real estate attorney can help you navigate the process regardless of how the market behaves.
Myth #3: Your credit score needs to be excellent.
An excellent credit score is commonly understood to be between an 800-850, but you don’t need a score in that range to buy a home. It’s true that the better your credit, the more favorable your loan terms, but there are loan products and assistance programs available to help people with less-than-excellent credit become homeowners. For example, with some FHA loans, the minimum credit score can be as low as 500!
New Series Alert!
From myth busting to best practices, we’re launching a new series here at the Sable Law Group Wisconsin newsletter. With the same enthusiasm and expertise that we delved into Estate Planning and Probate, we are centering REAL ESTATE for the next few months. Watch this space for information, tips, and resources to support and empower YOU as you consider starting, or taking the next step, in your real estate journey!
