The Top 5 Home Buyer Misconceptions as Told by BHFCU Mortgage Pros
With spring home buying season right around the corner, are you confused about the “rules” to buying a home? Never fear. Several of our Mortgage pros pulled together a list of the biggest home buyer misconceptions to set you on the right track.
#1 – Having a realtor isn’t necessary.
You may be able to browse Zillow imagining your life in everything from a cabin to a castle but to be taken seriously by sellers, you’re going to need a realtor. You’ll know when homes hit the market sooner, and you can leverage the years of home buying and selling knowledge with a professional there to guide you. Bonus, (most times) realtors don’t cost a buyer!
#2 – You don’t have to be pre-approved to shop.
Now that you’ve secured your realtor, they will likely require you to seek pre-approval from a lender if you haven’t already. Getting pre-approved gives you buying power and shows buyers you’re serious. BHFCU’s team of mortgage lenders is here to help you with the pre-approval process!
#3 – Your credit score must be perfect.
Good news! Perfect credit isn’t required to buy a home! Our mortgage pros suggest shooting for a score in the mid-600s before applying for pre-approval. For tips on improving your score, check out our free credit monitoring tool.
#4 – A 20% down payment is required.
Having 20% cash for a down payment on a home is a thing of the past. While it’s nice to have, it’s not always financially feasible, especially for first-time homebuyers. At BHFCU, we offer multiple options for home buyers, including up to 100% financing.
#5 – Home buyers don’t need any cash.
While you don’t need 20% of your new home’s price, you will need a little cash. Don’t get caught empty-handed! You will need $3,000 - $5,000 for things like earnest money, a home inspection, and other closing costs. And if you don’t have that sort of cash, there are assistance programs that can help.
The home buying process is personal. Check out all the ways BHFCU mortgage lenders can help when you’re ready.