20% downpayment needed and other home purchase myths.
I need 20% for the down payment
A friend of mine was just told this by a realtor. Now the market is very competitive and a realtor may not be willing to work with you if you do not have 20% to put down however you can get a mortgage with as low as 3% down if you are a qualified first-time home buyer with a Conventional loan.??
I need perfect or near perfect credit-
This is far from true and your lender should have access to the FHA program which has less stringent credit qualifications.
Shopping different lenders will destroy my credit score-
There is a small shopping window where you can do multiple inquiries and still only have your credit go down on the first inquiry. Please ask your Loan Officer for more details about the time frame and don’t feel pressured into taking a mortgage with the first lender you speak to.
As long as I have enough for the down payment I can get a house–
There are escrow costs tax and insurance as well as multiple loan costs that you have to consider as well. Your lender may have a program where they can pay some of these costs so make sure to ask.
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Benjamin Kell NMLS 2126313