Buying a home is a big commitment—and if you’re currently renting, there are likely some ideas that make you question whether you’re ready or able to buy a home.
But the truth is, a lot of those ideas are myths—and when you understand the facts, those myths don’t have to hold you back from fulfilling your dream of homeownership.
A recent article from realtor.com outlined some of the most common myths around transitioning from renting to owning a home, including:
- You need a 20 percent down payment to buy a home. The idea of saving up a 20 percent down payment can feel overwhelming or out of reach for many renters—but luckily, you don’t need to put 20 percent down to successfully buy a home. There are plenty of low down payment loan options available that require payments as low as 5 percent (for conventional loans).
- You need perfect credit to buy a home. Having good credit is certainly helpful when trying to secure a mortgage—but if your credit is less than perfect, you can still buy a home! For example, FHA loans have lower credit and income requirements than conventional loans.
- Buying a home means you’re stuck in the same place. Some renters are hesitant to buy because they’re afraid owning a home will tie them to their current location for years to come. But owning real estate doesn’t have to tie you down; if you have the need or desire to move in a year or two, you can always sell or rent out your property.
So, what does this mean for you? There are a lot of myths out there surrounding homeownership—and, if you’re considering buying a home, it’s important to dispel those myths so they don’t hold you back from transitioning from renting to owning property.