Thinking about purchasing a home is huge, to say the least. You may even find yourself searching houses on minute then thinking it’s ridiculous to even consider buying a house the next minute. One thing for certain, owning a home is 100% worth the process you have to go through to get the keys. If this is something you have been thinking about doing for some time now, then our team at Ace Mortgage Loan Corp. says to go for it. We know how intimidating the idea of having a mortgage can be, but we also know how rewarding it feels when you step foot into a house and get to call it your own. So now that you have decided home is indeed for you, there are a few myths that you need to push out of your head. Luckily for you, our team has created this guide to help debunk the commonly heard myths about homeownership. This way you can relax knowing that you are making the right decision. If it helps, our team is here to walk you through the entire mortgage process.
Your Down Payment Needs to be 20%
The whole idea of how much down payments should and shouldn’t be is now a thing of the past. While you are going to need to put some money upfront, it does not necessarily need to be of some specific amount. Nowadays we have loan programs that are in place to help first-time homebuyers with this part of the homeowning process. Even if you have plenty of money to make a 20%, 30%, or even 40% down payment, you may not want to do that. With all of the options out there the smartest thing to do is weigh them. From down payment assistance, gift money, to mortgage insurance, you have plenty of options to make this situation work best for you. You may be thinking, that’s great and all but what about getting a low-interest rate, and we understand why this would be a cause of concern for many. However, this is anothe4r mini myth included in the down payment myth. Other factors such as your credit score, income, employment history, and debt all affect your interest rate and loan program. These are all things that you can navigate easily with an Ace Mortgage Loan Corp. team member by your side.
Renting is Cheaper
The most common trap people fall into when discouraging themselves from being a homeowner is that renting is cheaper. While your monthly rent payment may look cheaper on paper compared to a monthly mortgage payment, this is not always the case. Here is where the myth is busted, your monthly rent payments are always at risk of being raised while your monthly mortgage payments are coming in at a fixed rate. You will always have the same rate to commit to the long term while rent prices are always skyrocketing. An apartment or home rental will not give you any equity like a home will. This means that with time your home will be able to be sold at a higher price than you bought it for. To figure out what the numbers would look like for your specific situation, we recommend coming in and speaking to one of our team members. We can do all of the math for you.
You Need a Perfect Credit Score
This may come as a shock for some. Having a perfect credit score would be a huge help to you but it isn’t necessary when owning a home. Your credit score can even go as low as 600 and you still will be eligible for a home. Sadly, this is not the case for renting. When you rent it’s more competitive with some places requiring a credit score of 750 to even sign a lease. This can be tough for those who have gone through some rough patches in the past.
Here at Ace Mortgage Loan Corp., we are dedicated to spreading the truth about homeownership. Sure, it can be scary, but that doesn’t mean you shouldn’t go through with it. To learn more about the facts of homeownership and discuss your options, give us a call at 954-777-4774 today!