When buying a house there are a lot of myths.
Myth: You need to put down 20%.
Truth: Not true. There are a lot of programs so don’t let a down payment stop you from buying a house.
Myth: Down payment covers the closing costs.
Truth: Closing costs are title, escrow fees, appraisal and more. All of these costs are in addition to the down payment.
Myth: I have to have perfect credit.
Truth: There are a lot of times when we won’t have perfect credit because life happens. This should be discussed with your lender. Sometimes there are ways to work through these issues. Don’t automatically think it can’t be done.
Myth: I can’t get money from someone else for my down payment.
Truth: You can get a gift from a parent or relative to use for a down payment.
- Purchasing a home is possibly the single biggest transaction made in one’s lifetime.
- It’s important to think about the whole picture and wealth strategy when making this decision.
- Once the whole financial picture is in view then the best financial decisions can be made when taking out a mortgage.
- It’s all about structuring your mortgage to fit your financial plan.
- A mortgage can help you restructure your finances and provide options to build wealth.
Good steps to follow:
- Budget. Have a budget for your current expenses to know how you can take on a mortgage payment.
- Retirement. Have you been putting money away for retirement? It is important to ensure that money is being used wisely. It’s a good idea for the mortgage broker to engage with your financial planner.
- Savings. Be sure that you have 4-6 months of living expenses in your savings in the event you have any type of emergency.
- Credit. Be sure you are able to pay your bills on time and maintain great credit. Credit scores and building good credit is important.