Top Home Buying Myths Busted!

Once you have decided you want to get a house instead of an apartment, you have to start sorting the facts and the myths of home ownership. It's not usually a one-time payment, so you don't want to regret it in the end. So before you jump into home ownership, make sure you know what you're getting into and make the most out of your hard-earned money.

1. Browsing a house is the first step

Sure, browsing is fun. It makes you even more excited to see that this might be the house you're going to live in after all the home-buying work. However, you have to make sure first that your credit is in top-notch shape before you start house hunting for real. Don't forget to get pre-approved for a mortgage before you set on your home-buying journey. This way, you can determine how much your budget is.

2. A 30-year mortgage is the best option

Not because it takes longer to pay means, it's the cheaper option as well. If you think that the longer you agree to invest in your home, the cheaper the mortgage payments will be, think again. You could end up paying more if you pick the 30-year option instead of the 15-year mortgage. Because with a 30-year plan, you are borrowing the same amount of money for twice as long at a higher interest rate.

3. Down payment must be 20%

Nowadays, many lenders are willing to offer up home loans with 10% or 5% down. If you can qualify, you can skip the conventional loan and head to the Federal Housing Administration for a government-backed loan with only 3.5% down. Although many programs are geared toward low-income home buyers, you can always have different ways to qualify for help on the local or federal level. So you can find the real estate that's meant for you!

4. Bad credit won't buy you a house

Even if you have bad credit, you can still qualify to get a loan. That's why you don't have to worry even you have under 600 credit score.

5. Schools don't matter if you don't have kids

Even if you don't have kids, a neighborhood plays a vital role when it comes to real estate. Because sooner or later, you're going to need a nice neighborhood with schools and malls nearby for sure. Also, when you plan to sell your house in the future, it will be easier if it's very accessible.