Do I need twenty percent down payment,? Should I wait until the market picks up? How many times should I get pre-approved? The down payment is the only upfront cost I have to worry about, right? We’re diving into and debunking some of the most common home buying myths for our potential Dorsey home buyers!
Myth: It’s A Bad Time Be In The Housing Market
Debunked:No one can pinpoint the best time to buy a home inHoward County. Sure, the experts can give us the most favorable time frames, but those are determined almost 10 months after the peek has passed. If you continue to wait for the “best time” to buy a new home, the market could have significantly increased! Don’t wait on trends and reports to tell you the best time to buy your new Dosey Home. The only timing that matters when it comes to buying your new home is yours!
Myth: Use Everything You Were Approved For
Debunked:What you were approved for is merely the amount you’re ALLOWED to borrow from the lender!Realestate.comstates,” a lender will allow you to commit up to 50 percent of your gross income to your monthly debts.” Whether this is something homeowners can afford relies entirely on them and their financial outlook for the future.
Myth: Too Many Credit Check From Lenders Decreases your Credit Score
Debunked:This is a colossal myth we’re happy to debunk! No, too many credit check will NOT hurt your credit score. According toMortgageReport.com, “the two biggest companies that design credit-scoring systems (FICO and VantageScore) allow you to shop around for mortgages and auto loans.” Although there’s no downside to how having your credit ran multiple times by lenders, home buyers should pay close attention to when they are being checked. “FICO counts multiple hard inquiries for a single mortgage as one even if they’re made within a 45-day period. VantageScore does so over a two-week rolling window.”
Myth: You Must Have Twenty Percent Saved For Down Payment
Debunked:We’re convinced this is one of the oldest and most out of date home buying myths still around to this day! Although there’s no harm in bringing your twenty percent down payment to the home buying table, it no longer a requirement to purchase your home. In an article fromMorgatgeReport.com, contributor Dan Green states, “The “20% down” myth is unique to conventional loans.” So rather than being set on the down payment percentage, home buyers really need to do their homework on the home loans available to them.
The Only Upfront Cost Is the Down Payment
Debunked:Wrong, Wrong, and Wrong! Home buyers should not only be prepared for closing cost, which can range from2% to 7%of the home’s purchase price but also, additional fees for inspections, credit reports, insurance, and other out of pocket fees that arise.
Information is essential when embarking on your new construction home journey. Give us a call if you have questions, about Dorsey’s home building process and how to get started on your new construction home in Howard County today!
