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3 Things You Didn't Know About Buying a House

Buying a home is a huge step for your future, and it will require that you take the time and effort to secure a good mortgage and find the right home for your needs. However, many people don't even bother looking for a home because they feel that they can't afford one or that they can't secure a mortgage

A recent study done for Wells Fargo debunked a number of myths and misconceptions that most Americans still hold true. Here's a rundown of three things you might not know about buying a home.

  1. Your Credit Requirements May Not Be What You Think They Are – Credit scores do matter when it comes to securing a mortgage, but they're not the sole thing that are looked at. Certain loans will require very good credit scores, but thanks to government backed loans like FHA loans, scores of 680 and sometimes even lower are regularly allowed. In other words, your low credit score may not be stopping you.
  2. You Don't Need As Large Of A Down Payment As You Think – Down payments are regularly said to be the biggest hurdle to buying a home. In fact, about 44% of people said that they believe it requires a 20% down payment to secure a mortgage. While there's no question that larger down payments can make it easier to get a loan and to receive better terms and rates, the reality is that most lenders regularly approve mortgages with just 5% down. Government backed loans like FHA loans may require as little as 3% down.
  3. Your Income May Not Be Holding You Back – A large number of people – about 30% according to the study – believe that only those with high income levels are able to secure a mortgage and buy a home. However, the facts are that mid-range homes are generally within the financial reach of the majority of Americans. It may take some effort to shop around for the right home and the right mortgage, but it's more possible than you might think.

Reviewing the points above, it becomes clear that securing a mortgage may not be as difficult as you think. There are numerous things about the process that end up surprising those seeking a mortgage, and the best option you have is to spend time looking into the possibilities and seeing what choices you have. It could lead to home ownership.

 

First Time Home Financing.com does not offer mortgages or direct financing. FTHF.com is a website that offers information about house financing and does not promise that all applicants will be approved for the new FHA loan program with lower mortgage insurance. This website and its affiliates have no affiliation with the FHA or any other government agency. This website offers a information about lending services by publishing editorial content related to the U.S. finance sector.

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