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When you're buying a home for the first time, you’re bound to have many questions and concerns throughout the process. You’re probably asking friends, family, and neighbors about their first-time home-buying experiences. While you’ll hear an array of stories, both good and bad, Ernest Homes wants to offer our expertise to help ease your mind and sift through the bad. After years of experience and thousands of homes built (many for first-time home buyers), you can trust that we know the truths and myths about buying a first home. Let us help by diving into some of those myths.

1. A down payment must be 20%

You do not need 20% of the home’s price to put as a down payment. You may not need to put anything down depending on the type of loan and down payment assistance programs you qualify for. For example, USDA and VA loans do not require a down payment, but there are requirements to be eligible for them. Even if you have some money saved to put down, it’s worth weighing your options based on your overall financial situation and goals. First-time home buyers should consult with their mortgage lender to figure out the best path for them.

2. Renting is cheaper than owning a home

This myth depends on a few factors, but overall nothing beats the personal and financial gains of owning a home. In the short term, renting can sometimes be the cheaper option. However, if you’ve been renting for years, you’ll have missed out on a significant amount of money built through the equity or appreciation of an owned home. Rentals may gain some value, but that value will go to the owner, not you. With the help of loan programs to help you with the initial costs of home ownership, it’s worth researching the option to buy versus rent.

3. You should wait to buy a home until prices come down

One of the home-buying myths you’ll hear often is to wait until home prices lower. Along with interest rates, home prices do not follow a straight-line pattern. Typically, they change in varying, mostly small, degrees over time. This myth also applies to renting versus owning because while prices and rates change up or down, rent can steadily increase annually, partially due to your landlord passing on the costs of hiring repairmen or inflation onto you. It may seem risky to search while prices are rising, but it can also be risky to wait since there is no sure way to know what prices will be if you wait too long.

4. Student loan debt will interfere with mortgage approval

There are millions of Americans who have both student loans and a home mortgage, so it’s not impossible. However, it depends on your situation, which you can discuss with your lender. Having student debt can help you build credit (which can help loan approval), but it can increase your debt-to-income ratio (which can hurt loan approval). However, keep in mind there are many other factors included in your debt-to-income ratio that can help boost your likelihood of getting approved.

5. Your credit score needs to be perfect

First, there’s no such thing as perfect. Second, getting the “perfect” credit score can take a very long time. It’s important to remember that you do need credit to purchase a home, but it doesn’t have to be perfect. Aside from a conventional loan (which requires a higher score than others), you can still qualify for a loan with fair to good credit even below 600.

6. All lenders are the same

Not all lenders are the same, whether it’s your first or fifth time buying. A few things to ask and be aware of: 1.) Rates and fees can vary per lender; 2.) There may be added costs if the lender’s employees are commission-based; 3.) The kind of loan programs they offer and what they require. The main thing is to find a lender who really takes the time to understand your financial needs and goals. You can never ask too many questions when choosing a lender (especially for your first time buying) as it will help you ensure you’re getting the best deal for you.

7. There is a right season to buy a home

Despite the conventional wisdom that spring is the best time to buy, fall and winter can be great times to buy, too. During spring, there are a lot more people looking for homes, making the market very competitive (aka cutthroat), and causing prices to increase. However, inventory starts to peak in October, so looking in the fall and winter allows more time to consider multiple options, and sometimes negotiate a better deal.

The Ernest Homes team cares about your new home just as much as you do. We want to make sure your path to move-in day is smooth, easy, and above all else, enjoyable. When it comes to your new home, it really does “take a village.” 

At Ernest Homes, we’ve mapped out the entire home buying process, step-by-step, so that you have all the information you need to get started. You can rest assured that any concern or question will always be at the top of our priority list. Our sales consultants have years of real estate experience and are experts in helping your dream of homeownership become a reality.

Every single day, our team comes into work with one goal in mind: to build remarkable homes for first-time home buyers like you! Our mission is to lead with craftsmanship and customer service, and we are available to you throughout the process, and even after closing. And if something goes awry, you’re never alone. In fact, one of our core values is compassion, and if you have a problem after you move in, it’s our job (and pleasure) to take care of it through our warranty program.

You may be searching, “How to buy a home that’s not too expensive?” It’s normal to assume that your “dream home” is too expensive to afford. We don’t blame you for assuming that! But the best thing about working with Ernest Homes is that the home you’ve always imagined is entirely achievable, and we have a dedicated team to lead you along the way. 

As one of Savannah’s most trusted home builders, our biggest passion is making people happy. When you trust us to build your new home, we promise to make sure you’re happy and well taken care of — for the first home, second home, and beyond! Let us know if you have any questions about our homes and communities or want to get started on your dream home with Ernest Homes.