Is the thought of buying a house and getting a loan stressing you out? In this video, I’m going to debunk 4 common myths that first-time home buyers believe about the process. I’ll explain how arming yourself with the right information and knowing your numbers will make your home buying experience much easier.
The Right Information
Buying a house and getting a loan for hundreds of thousands of dollars can be super stressful. You probably feel like you’re getting your butt kicked—but you don’t have to. All you need is the right information. It’s perfectly normal to feel nervous, stressed out, or even a little confused about buying a house for the first time. As a buyer, I’m sure you’ve got lots of things going through your head right now.
For example, how much do you need to put down? How much is your monthly payment going to be? What kind of interest rate should you be looking for? And yes, turning to Google for all your answers can be extremely frustrating. It also might scare the crap out of you. It’s sort of like going online for Web MD; no matter what you type in, you’re probably going to die tomorrow.
Let’s be honest: unless you’re a numbers person, researching information about loans and real estate can be extremely boring and time-consuming. To save you some time and effort, it’s important to have the right information when you’re buying a house. Unfortunately, you’re going to find a ton of bad information out there. That’s why I’m going to go through the four most common myths that home buyers have had throughout my six years of helping them finance their dreams.
Myth #1: Your Interest Rate Is Most Important
The first myth is that your interest rate is the most important piece of your loan. However, this is not true. When you finance your property, you want to base a few things. This includes how long you’re going to live on the property, what you plan on doing with it in the short and long term, whether you plan on renting it out, if you’ll be making any improvements to the property within the first year, and if you have a down payment.
At the Kick Butt Mortgage Team, we focus on the right strategy for your investment. We don’t obsess about an interest rate that may or may not matter.
Myth #2: You Need Perfect Credit
The second myth is that you need perfect credit to buy your next house. I’m going to kick the butt of the next person that tells me this. There are all types of programs for all types of borrowers with all different ranges of credit scores. If you’d like to break this down for your individual circumstances, go ahead and reach out to me today and we’ll get you started.
Myth #3: You Need A Large Down Payment
Myth number three is that you need a large down payment to buy your next house. The truth is you do not need 20% down to buy a house. If you still believe this, you’re probably getting your butt kicked by one of your family members. They may have told you to bring that 20% to avoid PMI.
Many of my family members told me the same thing. But with where interest rates are right now, maybe putting a large down payment isn’t the right move for you. The question you want to ask yourself is, “Do I really want to tie up a large amount of money when I could be using that same money in a different direction to build wealth?” When you get a plan together early, it can save you a ton of money.
Everyone’s in a little bit of a different situation. So go ahead, reach out to me and my team. We’ll make sure that we get you into the right strategy.
Myth #4: You Can’t Afford It
Our final myth is the one that probably stops most people from buying: the belief that you can’t afford to buy a house. The truth is that most of you can afford to buy a house. How much home you can afford, though, depends on several factors.
And no, just because some online website told you you were qualified to buy a $500,000 house doesn’t mean you should actually buy a $500,000 house. You need to make sure that you’re buying a house with a monthly payment that you’re comfortable with. Your credit score and debt to income ratio are two of the most important factors when it comes to being qualified for a home—although years at your job, credit history, and additional savings can also help out when it comes to a mortgage application.
So if you’re employed and have decent credit, go ahead and reach out to the Kick Butt Mortgage Team and we’ll make sure to get the right strategy in place for you. It’s never too early to get your financing in line.
Getting Your Kick Butt Mortgage
Buying a house is exciting, but first and foremost it’s an investment. Part of that investment is getting a kick butt mortgage and terms to maximize your return. If you’d like more information, make sure you pick up a copy of my A to Z Home Buying Guide. It will guide you through the process and make sure you’re kicking butt on your next real estate investment.
Regardless of what kind of property you’re buying, knowing your numbers is the most important part. Reach out to me directly and we’ll build a great strategy for you and your family. You can also subscribe to my channel so you never miss an episode all about kicking butt in real estate. See you on the next episode!