First Time Homebuyer Mortgage Misconceptions
Interested in Buying your first home but think the mortgage barriers may be to high? You might be surprised to learn you don’t actually need a 20% down payment, a perfect credit score, or several years on the job.
Misconceptions First Time Homebuyers Have about Getting a Mortgage:
“I need to put 20% down to buy a home.”
There are several great 1st Time Homebuyer programs available that require 5% or Less as a down payment. In fact, one of our favorite programs only require 3% down on any conventional loan as long as one of the borrowers is a 1st-time buyer (one spouse could have been a homeowners before). If you are buying a $200,000 home your down payment would be $6000 which can also come as a gift from another person.
“I have to have been on my job for several years before I can buy a home.”
You may be surprised to learn that you can close on your new home up to 90 days before you start new job and use future income to qualify! You will need a signed employment contract stating your salary and two year prior history (college, partime jobs). We can use that future income now to qualify for your new home with no rate penalty or extra cost.
“I have to save up for my down payment.”
It’s actually fairly common for parents, relatives, or friends to give a first time homebuyer their down payment as a gift. Documentation of the gift is set out in the loan documents. In addition, closing costs may also be rolled into the purchase and/or paid by the seller on behalf of the buyer.
The best way to find out what you qualify for and learn about the loan programs and options available for first time homebuyers is to contact a lender. We recommend Warner McGowin at McGowin-King. He’s local with competitive rates and programs. Warner will spend the time helping you learn and decide which program is right for you.
