First Time Homeowner Again

I’m getting ready to buy a home. I’ve actually purchased 5 homes in my lifetime, but this is the first one I’m buying on my own since my divorce. Like many people, I had concerns. And a lot of misconceptions. After reading David Bach’s great book, “The Automatic Millionare Homeowner” I realized that the myths of home buying were just that - myths. Don’t let these myths keep you from the personal and financial rewards of homeownership.Myth #1
“I don’t have enough money for a down payment.”
In the past, buying a home required a 20% down payment. But not today. In fact, 7 out of 10 first-time homebuyers make a down payment of 10% or less. It is possible to purchase a home without a lot of cash, or any at all.

Myth #2
“I have less-than-perfect credit, so I can’t get a mortgage.”
A less-than-perfect credit history doesn’t have to stand in your way of reaching your homeownership goals. Get a copy of your credit report and check it for errors.

Myth #3
“It’s less expensive to rent, and now may not be the right time to buy.”
In fact, you may be surprised how much home you can buy for the same amount you’re paying in rent right now. And you get tax advantages when you own a home. Unlike rental costs, the monthly principal and interest payments stay the same for the life of a fixed-rate mortgage. Because home prices historically increase (and only occasionally decline), buying is a more effective strategy than trying to time the real estate market. And you’re building equity and wealth as you go.

Myth #4
“The whole mortgage process is too long and complicated.”
A good lender will walk you step by step through the financing process. Get a copy of David Bach’s book - it takes you through the various phases of applying for a mortgage in simple layman’s language and makes it easy to understand.