In honor of Financial Education Month, we’re answering some of the most common homebuying questions. Whether you’re just starting to think about purchasing a home or getting ready to apply, understanding the facts can help you move forward with confidence. Check out these frequently asked questions – and see how your knowledge stacks up. 

True or False:

1. You cannot qualify to buy a home with less than 20% in cash to put down.
   False!  Conventional home loans only require 3% from first-time buyers, or 5% from all others. VA and USDA loans can be had with a zero-down payment. And FHA loans require as little as 3.5% down.

2. Lenders only finance loans to people with great credit.
   False!  Fannie Mae, Freddie Mac, and individual government programs all have their minimum credit scores and guidelines but borrowers with less than perfect credit buy homes every day. 

3. With the high cost of rental housing, I’ll never save enough money to buy a home. 
   False!  The First-Time Homebuyer Savings Account allows you to save money towards your down payment AND save on state taxes. Our Pay Yourself First feature will help you to set that money aside. And down payment assistance programs are available through county, state, and federal agencies. 

4. Now is a terrible time to buy a home. I’ll wait until interest rates come down. 
   False!  Rates are not where they were a few years ago, it’s true, but higher rates have resulted in a market slowdown.  It is a buyers’ market out there. Now is the time to buy before prices rise again and you can always refinance for a better rate in the future. 

5. Home inspections are mandatory and expensive. 
   False!  Home inspections are rarely legally required. A buyer may waive their right to an inspection. That said, the price tag (between $300-500) is a reasonable trade-off for the thousands in repairs a thorough inspection can find before you sign on the dotted line. 

6. You should get preapproved before you start house-hunting.
   True!  Most real estate agents strongly prefer that you already be preapproved before you sit down with them. It is the best way to learn what you can afford. 

Want to learn more – check out additional educational resources here. 

Questions? Ask one of our Real Estate Loan Specialists by calling 503-588-0211, option 4 or schedule a call here.

Written by: Elena Christian

Read more mortgage posts:

Back to Basics – Homeownership FAQs
The Steps to Preparing to Buy Your First home – And Why it Matters in the End
Mortgage Insurance: The Best Thing Since Sliced Bread?