REAL TipS: BUYING

Myths about homeownership

Many consumers believe that they can’t qualify for a home loan because of a variety of reasons, including spotty credit and no money for a downpayment. But times have changed. Most lenders evaluate mortgage applications a lot differently today than they did even 10 years ago. Below are some common homeownership myths.

Myth: You need perfect credit to become a homeowner. Fact: You can buy a home with less-than-perfect credit. Sit down with you Texas REALTOR® and discuss your financial situation. Your REALTOR® can help you determine if homeownership is a good option for you at this point in your life, and can help you find a loan that meets your budget.

Myth: You need a 20% downpayment  to buy a home. Fact: There are a number of programs and resources available for first-time homebuyers who have little or no money for downpayment and closing costs. If  you’re interested in finding out about programs in your area that you may qualify for, contact a Texas REALTOR®.

Myth: You can't buy a home in Texas if you're not a citizen. Fact: If you're a legal resident, you can purchase a home anywhere in the United States.

Myth: If you don't have a bank account or credit cards, you can't qualify for a mortgage. Fact:  While credit cards and a bank account are a great way to establish credit, they may not be necessary for obtaining a mortgage loan. Some lenders will approve you without either. It’s important to note that if you don’t have these things, you’ll likely need to keep records of a history of payments you’ve made for items such as utilities, rent, and car payments.

Texas Association of Realtors®