4 Myths About Buying Your First Home (And the Truth Behind Them)
4 Myths About Buying Your First Home (And the Truth Behind Them)
Buying your first home can be exciting. It should be exciting! But as soon as you tell people you’re thinking about buying a home, you’ll hear no end of opinions that can make it feel overwhelming and lead you to second-guess yourself.
Here's up-to-date information about homebuying to help you make informed decisions about purchasing your first home.
Myth 1: You Need a 20 Percent Down Payment
A lot of people think a 20 percent down payment is necessary to buy a home. That’s not true. There are benefits to a 20 percent down payment, but not as many benefits as paying cash for the full price of the home up-front.
It’s important to understand the scale of your homebuying finances to make the best decision. A smaller down payment shouldn't delay your homebuying plans.
There are many programs and loan types available that require little to no money down. A knowledgeable loan officer can help you explore the options available to purchase your new Imagination Home.
Myth 2: Renting Is Always Cheaper Than Buying
The myth that renting saves money keeps many would-be homeowners signing lease after lease. While rent payments might look smaller than a mortgage at first glance, that money is gone forever. Each mortgage payment builds your financial future. As your home grows in value, your equity increases in dollar value, you'll see again when you sell.
The tax deductions for mortgage interest and property taxes sweeten the deal even more.
Timely mortgage payments can have a tremendously positive impact on your credit score. Speaking of which…
Myth 3: You Need Perfect Credit to Get a Mortgage
The perfect credit score myth scares too many potential homeowners away from even trying. Many mortgage programs exist to help homebuyers who have had credit hiccups in the past.
Imagination Homes works with lenders to help you achieve your homeownership goal.
Myth 4: You Should Buy a Fixer-Upper in a Great Neighborhood
Some believe that renovating an outdated home is the best financial move. However, fixer-uppers can hide expensive surprises, especially for first-time homeowners.
Faulty wiring, aging pipes, antiquated HVAC systems, and structural issues can drain your wallet and your weekends.
New construction is the best way to avoid the expensive pitfalls and painted-over problems a previous homeowner didn’t feel like dealing with. Imagination Homes is building a move-in ready homes with energy-efficient design and modern features that help keep future maintenance costs low.
Buying Your First Home Is a Big Step
First-time homebuyers face plenty of outdated myths and misconceptions. Knowing the truth about down payments, renting, credit scores and finding the rights puts you in a better position to buy the home you’ll love living in.
Looking for an easier path to homeownership? Imagination Homes designs modern, energy-efficient homes and supports you every step of the way — from exploring floor plans to move-in day.
Your first home purchase can be exciting and stress-free!
More Around the Corner From Imagination Homes
Imagination Homes is selecting top-quality materials, curating designs and color palettes, and preparing to build your new home. We can’t wait to welcome you home!
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