Top 3 First Time Home Buyer Myths - Debunked

As a first-time home buyer in Indianapolis, it's important to be aware of common myths that can potentially misguide your decision-making process. Here are three top myths for first-time home buyers:

Myth #1: Renting is always better than buying a home.

Reality: Renting and buying both have their pros and cons, and the choice depends on individual circumstances. While renting offers flexibility and lower upfront costs, buying a home can provide long-term financial benefits such as building equity/wealth and stable housing costs.

Owning a home also allows you to personalize your space and potentially benefit from property appreciation over time.

Myth #2: You need a perfect credit score to buy a home.

Reality: While a good credit score is essential for obtaining favorable mortgage terms, you don't necessarily need a perfect score to buy a home. Many loan programs cater to first-time buyers with various credit profiles. Lenders consider other factors such as income, debt-to-income ratio, and employment history alongside credit scores.

A good lender will give you a plan to improve your credit score, if needed, so you can buy a home. And remember, there are options available for buyers with less-than-perfect credit.

Myth #3: You need a 20% down payment to purchase a home.

Reality: While a higher down payment can provide benefits such as lower monthly mortgage payments and avoiding private mortgage insurance (PMI), it's not always necessary to have a 20% down payment.

There are loan programs that offer no down payment to low down payment options. FHA loans require a down payment of only 3.5% and some conventional loans with 3% down. VA and USDA Loans offer $0 down payment, when you qualify.

Additionally, there are down payment assistance programs and grants available for first-time home buyers, making homeownership more accessible. You need a great lender to help you navigate the best mortgage loan program for your personal circumstances. 

Remember, it's crucial to seek advice from professionals, and consider your unique financial situation when making decisions about buying a home and especially when you are a first time home buyer. The Evelo Team will work with you and connect you with lenders who can advise you about your options. 

Give us a call today and we'll get the ball rolling for your purchase of a home!  (317) 863-9011