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4 First Time Homebuyer Myths

Sep 8, 2022

4 First Time Homebuyer Myths


Are you considering purchasing a home for the first time? 

Buying a home is an important decision, and can seem daunting with so many factors to consider. 

With that in mind, here are 4 first time home buyer myths to be aware of:

  • Myth #1 – The first step in purchasing a home is house hunting.
      • Surprisingly, searching for your dream home online is not the best first step. If you are considering purchasing a home within the next few months, begin with a pre-approval. Realtor.com suggests starting with a pre-approval from a lender (like Legacy!) to determine your budget.
      • Knowing exactly how much you can afford will save you and your realtor time and potential heartbreak, and allow you to have more confidence in your offer.
  • Myth #2 – You must have 20% down to purchase a home.
      • Perhaps you have been hesitant to purchase a home due to not having 20% of the purchase price saved for a down payment. 
      • Putting down 20% is definitely advantageous and will keep you from paying monthly PMI (private mortgage insurance), but is not required, especially for first time homebuyers. Texas has programs for first time home buyers that allow as little as 3% for a down payment. With only 3% down to save for, you may find that purchasing a home is more within your budget than you might expect. There are even loan options with NO down payment if you meet certain criteria. 
  • Myth #3 – You can’t buy a home if you have student loans or other debts.
    • Your credit score is important, but does not have to be perfect. In fact, making consistent monthly payments toward debt often strengthens your credit score.
    • Lenders take into consideration your ‘debt-to-income ratio’, as well as your credit score when considering your application. 
    • Any of our excellent Loan Officers will be able to review your financial situation and advise the best steps to reach your goal of purchasing a new home.
  • Myth #4 – The only cost at closing is my down payment and I have saved enough to cover that cost only. 
    • Down payments are often highlighted as the main savings goal when purchasing a home, but there are other fees to be aware of at the closing table as well.
    • Our Loan Officers will go over all of these fees with you up front, and send you a copy of the final numbers before closing for peace of mind.
    • Additionally, Legacy Mortgage actually offers a discount toward closing costs for those who work in several service industries. We honor those who work in industries such as: teachers and support staff, nurses, doctors, first responders, military, veterans, and anyone serving in ministry with a discount toward your closing costs.

If you are interested in learning more about the home buying process, or would like to begin the pre-approval process, give us a call today at 903-312-7036, and one of our Loan Officers would be happy to help you!