Our friends at Transnation Title laying down the facts about home buying for first time buyers! It’s time to talk about some common myths revolving around buying a home. You’ve heard the saying “perception is reality,” which is why it’s key for all of us in real estate to do some debunking. The journey to homeownership is complicated enough without misconceptions getting in the way. After all, flexible loan programs, equity-building benefits, realistic financial strategies and guidance from trusted real estate professionals – like a REALTOR® or loan officer – can make buying a home more achievable than it first appears. Here are four misconceptions about homebuying that should stay in the past. **Myth: You’ll need to save up for a hefty down payment before you can even think about buying a home, with 20% being the most frequently cited number.** **Fact**: Various loan programs offer much lower down payments, such as 3 to 3.5%, and some loans can be obtained with no down payment required. While getting your finances in order and saving for some upfront costs are both important, talking with a good loan officer about your financial picture is always the smartest option. **Myth: Interest rates are at a historic high right now.** This incorrect assumption comes from a survey that shows at least 54% of Gen Z and millennials think mortgage rates are at an all-time high. It’s also important to remember that many potential first-time homebuyers grew up during a financial housing crisis, so they may be extra wary. **Fact:** We’re not likely to see mortgage rates as low as we did during the pandemic anytime soon, but as of October 2024, rates have been hovering around 6%. This is actually below the long-term historical average of 7.72%. Plus, it’s always possible to refinance down the line when rates are lower to save money in the future. **Myth: You shouldn’t have debt when you buy a house, and debt from student loans or credit cards are roadblocks to homeownership.** **Fact:** Lenders look at your debt-to-income ratio, not just your total debt. With manageable debt and steady income, many young buyers can still qualify for a mortgage, even if they carry other financial obligations. Again, this is why it’s important to rely on the expertise and guidance of our fellow real estate professionals. **Myth: You need a high credit score to get approved for a home loan.** **Fact:** Every potential homebuyer should know their credit score and take steps to improve it before purchasing a home. Doing so can help you qualify for a better mortgage rate. However, a less-than-excellent (or even good) credit score doesn’t automatically disqualify you from buying a home. In fact, you could be eligible for a loan through the Federal Housing Administration with a score as low as 580. Whether you’re a hopeful first-time buyer or an agent who loves working with them, we hope this list is helpful for you when it comes to the truth about buying a home. When you’re ready to finalize the deal, we hope you also trust Transnation Title Agency to demystify the title and closing process! We conduct a thorough title search on every property to make sure it’s marketable and free of any liens or unresolved claims. Reach out to our team at transnationtitle.com. * * * ### Discover more from Muskegon Real Estate Agent, Chris Simpson,Homes For Sale, Muskegon Homes,Muskegon House For Sale, Muskegon Real Estate, West Michigan Real Estate Agent, Muskegon Realtor Subscribe to get the latest posts sent to your email. Type your email… Subscribe ### Share this: - [X](https://chrissimpsonwestmichiganrealestate.com/2024/11/04/lets-get-in-front-of-4-myths-that-are-scaring-first-time-buyers/?share=twitter&nb=1) - [Facebook](https://chrissimpsonwestmichiganrealestate.com/2024/11/04/lets-get-in-front-of-4-myths-that-are-scaring-first-time-buyers/?share=facebook&nb=1) Like Loading... [Reblog](https://widgets.wp.com/likes/index.html?ver=20250926# "Reblog this post on your main site.") 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