Home Buying Misconceptions

There are a number of misconceptions regarding home buying. These can be due to how things can change over time, or due to changes in the market. Regardless, here are some popular misconceptions regarding home buying.

My Credit Score Needs to be Perfect

While your credit score should be good, it does not need to be perfect. It can be an advantage to have a good credit score, as it will help lower your interest on any loans you may take out. However, a lower credit score is not the end of the world. There are a number of options to circumvent a low credit score these days. These options include making sure all payments are paid on time, avoiding large purchases and decreasing your credit to 30 percent or less.

Fall and Winter are Bad Times to Buy

A lot of people feel that spring is the best time to buy a home. However, too many feel this way, and as such, the spring housing market can become overcrowded with perspective buyers. This has the effect of driving up the prices for homes. Fall and Winter tend to have less competition for houses in the market.

Not Enough Housing Available

There have been concerns for years about this topic. Zillow lists the homes for sale down by 17.5 percent as of December 2021. Due to the new influx of millennial homebuyers, the supply will need to change to meet the demand. However, home production will likely be driven up due to this demand.

You Need to Make the 20% Down Payment

This is a common one. The truth is, no, you do not need to make the 20% down payment on a home. While it can be very helpful to do so, there are several options available incase you cannot make the 20% down payment. These include down payment insurance, gift money, and mortgage insurance.

ProVisor uses our loan and refinancing expertise to dispel home buying misconceptions. Our expert employees offer our professional services to the areas of Milwaukee, Waukesha, East Troy, Madison, and around the Midwest. Contact us today if you have any home buying questions!