Common Myths about Qualifying for a Home Loan
We’ve all heard the common myths that owning your own home “ties you down” and that renting a place is basically just “throwing away money.” Let’s debunk a few of these myths and get down and dirty and find out whether homeownership is right for you.
Myth #1: You Can’t Own a Home with Credit Issues
So your credit isn’t exactly amazing, it’s okay we’ve all been there. Whether you’ve just graduated from college and have student loans or maybe you’ve got some medical bills you are still working on paying off, don’t let your credit stand in your way.
Many people have come to believe that the only way you can get yourself into a great housing situation is by having a stellar credit score, but that just isn’t true! What many people don’t know is that there are hundreds of different programs out there that you might qualify for in order to get you into your dream home without a credit score in the 800s.
The best thing you can do is speak to a loan officer who can review your credit and options to let you know what the right fit is for you and your family. In some extreme cases when your credit is the problem, they can even provide counsel on what you can do to get your credit in order to buy that home in the near future! Meaning that your dreams of homeownership don’t have to be just dreams.
Myth #2: You have to have over $25,000 or 10% down to Qualify for a Home Loan
People save for years to buy a new home, but is that the only option? No. In Utah alone, there is a program called Utah Housing Corporation Loan (UHC) that if you qualify allows the borrowers are able to purchase a home portion of their down payment and closing costs to be paid for you.
“Borrowers are able to purchase a home with FHA or VA, or Fannie Mae financing with little or no cash investment through an approved Utah Housing Participating Lender,” according to Utah Housing Corporation.
You must be thinking “how do I know if I qualify?” Well, to understand your loan options and whether or not you qualify for this program or programs like this then make sure to check in with a Loan Officer to see what your options are best for you!
Myth #3: Home Ownership Costs too Much
Maybe you are thinking, “There aren’t homes available in my price range.” That’s False. It may surprise you that housing payments can start as low as $700 monthly. That means that there may be homes you didn’t think you could afford to buy, but you actually can!
Talk to a Loan Officer and after discussing what types of loans you qualify for they can get you in touch with a great Realtor that help find you not only the perfect home but also great communities that range in prices and amenities that help fit your lifestyle.
Whether you are just looking to see if you qualify or seeing what you can do to get yourself ready to qualify for home ownership the best thing you can do for yourself is talk to one of our Loan Officers today to figure out what is the best for you!