Buying a home is a big deal, right! So much so that many people, especially millennials, think it’s something that will always be out of reach or something to be feared. There are so many myths and misconceptions that hold people back from exploring their options and ultimately, stop them finding the home they always wanted. Today, I want to explore a couple of these myths and debunk them once and for all.
Myth #1: You need a 20% down payment.
Probably the most common myth when it comes to home ownership. Although a 20% down payment is ideal, not everyone can afford that. You can purchase a home with a smaller down payment, usually as low as 3-5%, in exchange for paying PMI (Private Mortgage insurance).
Myth #2: Now is a bad time to buy. We are going to have a market collapse soon!
Another very common myth that seems to persist no matter what the market is like. Now is a bad time to buy, well, when is the best time to buy, and how will you know? The reality is markets will rise and fall, year on year, month after month. Generally, competition is highest in spring and lowest in the fall. The exact highs and lows are only clear once they have passed. The best bit of advice I can give is focus more on your own personal and financial situation and less on the weather.