Common Home Buying Myths Debunked

There are a lot of misconceptions (a.k.a. myths) that home buyers, especially first-timers, encounter during the process of their real estate purchase. Here are some of the most common ones debunked.
Myth #1: You need perfect credit to purchase a home – Not entirely true. While an individual’s credit score definitely has an impact on the mortgage loan approval process and the subsequent interest rate, a perfect credit is not a requirement to secure approval for a mortgage loan. You don’t need a flawless, clean slate. The higher your credit score, certainly, the more options you’ll have to find a mortgage with good interest rates.

Myth #2: Owning a home is pricier than renting - This myth varies. There are a lot of markets out there where owning can be as affordable as renting, especially if you consider the tax advantages of owning a home. Rental costs increase over time, but fixed-rate mortgages are much more consistent.
Myth #3: Lenders share your personal information – Not so. For a lender to share your personal info with an affiliate, he will have to ask for your permission as locale-specific legislation exists to protect your confidentiality.

Myth #4: Lenders use only one scoring model to determine creditworthiness – Numerous credit-scoring models are at the lenders’ disposal to determine a buyer’s credit score. These models vary, but all share the same conditions in determining a score: the individual’s payment history and level of debt, among others. 

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