Almost all Americans believe that homeownership is an important part of the American dream because home ownership increases financial stability.
Unfortunately, too many Americans believe that owning a home is out of their reach. In truth, perceived obstacles are simply misconceptions about what is required to purchase a home. After reviewing the list here, you may discover that you're more prepared than you think.
FACT vs FICTION
"Renting is always cheaper than buying a home" - FICTION
Renting may be your best choice if you plan to move frequently. However, if you plan to stay in your home for five years or more, buying is likely the better financial choice. Assuming that your home appreciates in value, more than likely, you should achieve profit when you decide to sell your first home.
In addition, you can select a fixed-rate mortgage that won't change, instead of facing the risk of a surprise price hike in a monthly rental fee.
"You need to have 20% for the down payment" - FICTION
The average American thinks they must have between 17% and 21% of the purchase price for a down payment. This is NOT true. Discuss with your lender what is possible in your case. Loan programs through the VA, FHA and USDA all have zero to low down payment programs if you qualify.
"Mortgages are the same with every lender"
All lenders offer a variety of products, interest rates and fees for mortgage loans. Not all lenders are right for every customer, so be careful to choose one that fits your needs. The lender with the lowest interest rate may not be best because they may be new to the business or have a reputation for instability. You want a mortgage company that you can trust to deliver the mortgage package they promised and provide consistent service.