Home Buying Myths
Do I Need to Have 20 Percent to Put Down Before I Can Buy a Home?
Well, technically the more money you put down on a home the better off you will be and the more likely you are to be approved. Additionally, the more you put down on your new home will …show more content…
And generally anyone with a 720 or above credit score will usually qualify for a fairly good interest rate. Additionally, first-time home buyers who apply for an FHA loan will generally qualify with a credit score of 620 or above. However, even if you have a lower credit score that is hovering around 580 or so, you can sometimes still qualify for a home loan via one of the government loan programs that are available. One thing to remember though is that if you have bad credit or a lower than favorable credit score, you will have to pay a higher interest rate for that …show more content…
However, if you can afford to pay rent, you can probably afford to pay a mortgage payment. All you have to do is make sure you buy a home that is within your means. And better yet, buy a home that is slightly below your means which will probably end up saving you money if compared to renting. When you rent, your landlord probably raises your rent every year and sometimes every six months, depending on your lease term. This is a very common practice no matter where you rent or who you rent from. However, most mortgages are on a fixed rate that won't increase each year. And if you have an adjustable rate mortgage, the rates for those loans are generally extremely low and are will probably end up being less than what you're paying in rent.
The Bottom Line
Buying a home is the best way to build your credit while building equity at the same time. Whereas renting will do neither. Renting is simply throwing your money away and wasting time that could be used building equity. Therefore, if you can qualify for a mortgage, don't delay when it comes to the home buying process. The sooner you get started, the sooner you will be enjoying your new home and experiencing the joys of