Myths About When You're Ready to Buy a Home

Buyers mythsAre you trying to decide if you're ready to buy a home in Tyler this year? There can be some conflicting advice about when is the best time to buy, specifically around your personal readiness and market conditions. We want to help you dispel some of the myths around being ready to buy a home and help you find homes for sale in Tyler that are the right fit for your needs. 

Contact us any time to learn more about buying a home in Tyler, and keep reading for myths about when you're ready to buy a home.

Myth: You should wait until you have perfect credit

One of the prevalent myths is the belief that you need a flawless credit score to qualify for a mortgage. While a good credit score is undoubtedly beneficial, it's not the sole factor considered by lenders.

Many successful homebuyers secure mortgages with credit scores that are less than perfect. Lenders evaluate various aspects of your financial profile, including income, debt-to-income ratio, and employment history. Being aware of your credit score and taking steps to improve it is valuable, but don't let the myth of perfection prevent you from exploring homeownership.

Instead, talk with a few lenders and get some real numbers. You may be surprised that your credit score, while not perfect, is good enough to get a rate that makes owning a home a realistic goal in the near future. A lender can show you what you would be approved for, or provide guidance about any part of your finances that need some attention before you buy. 

Myth: You need a 20% down payment

You may have heard that you either need 20% to put down, or you really shouldn't buy without having a 20% down payment. The 20% down payment myth can be a significant deterrent for potential homebuyers.

While a substantial down payment can be advantageous in terms of lower monthly mortgage payments by avoiding private mortgage insurance (PMI), it's not a strict requirement. There are actually many mortgage programs that allow buyers to put down less than 20%, making homeownership more accessible. FHA loans, for example, often require a down payment as low as 3.5%. Additionally, there are down payment assistance programs and grants available for qualified buyers, challenging the misconception that a hefty down payment is an absolute prerequisite.

Again, it makes way more sense to talk to your lender before you assume how much money you need to bring to the table. 

Myth: You shouldn't buy unless you're ready to settle down for a long time

There's a common belief that homeownership is reserved for those ready to settle down and commit to a particular location for an extended period. However, the evolving nature of careers, lifestyles, and family dynamics challenges this myth.

Some individuals successfully navigate homeownership while maintaining a dynamic lifestyle, moving for career opportunities or personal growth. With proper planning and consideration, it's possible to own a home without sacrificing the flexibility to adapt to life's changes.

One of the keys to success is buying a home that will have great resale value. This way, you can expect to benefit from building equity and having a home that is easy to sell in a few years when you're ready for a change or need to move. 

Myth: You should wait for interest rates to come down before you buy

In 2024, interest rates are clearly higher than they were 3 years ago. Some buyers are concerned about buying a home with an interest rate that is so much more than what they had expected a few years before. 

However, waiting for 3% or 4% rates to return might be a mistake. While it is possible that rates would dip back down to that low point again, experts don't predict i in the near future. Instead of waiting for your ideal interest rate, focus on the factors you can control. 

If you can afford a home with current interest rates, consider buying now to allow that equity to grow. Then, if rates dip down again you can refinance to benefit from the lower rate, but you won't be wasting time or missing opportunities. 

Ready to learn more about buying a home in Tyler? Contact us any time. 

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