There are two prominent home buying myths you shouldn’t believe.

The 2020 Millennial Homebuyer Report shows that the millennial generation isn’t any different than previous generations when it comes to homeownership goals. Not only do the majority of millennials want to own a home, but according to the report, 84% of them consider homeownership a vital part of the American dream. 

Unfortunately, several myths surround the home buying process that can dissuade people from buying a home even when it’s in their best interest. There are two, in particular, that you shouldn’t believe:

1. “I need a 20% down payment.” Many buyers overestimate what they need to qualify to purchase a home and assume they have to put at least 20% down. What they don’t realize is that there are many assistant loan programs available for first-time buyers that require as little as 3% down. By just doing a little research, many renters can enter the housing market sooner than they think. 

“Remember that you have more options than you think.”

2. “I need a FICO score of 780 or higher.” In addition to down payments, buyers can sometimes get confused about their FICO score requirements. While lenders are tightening mortgage requirements, you should still be able to qualify for financing with a score of 640 or better. 

Of course, there are other factors lenders consider when qualifying buyers, but remember that you have more options than you think. If you’d like to know more about what it takes to qualify for a mortgage, I know plenty of great lenders I’d be happy to put you in touch with who can answer all of your questions. 

As always, if you have questions about any other real estate topic or are thinking of selling a home soon, feel free to reach out to me as well. I’m happy to help.