1| The first step is looking at homes

While the hunt for your new home can be a long one, the first step isn’t looking for an open house or making appointments through Zillow. Getting a pre-qualification for a home can help you dive a little closer in your search.
“It’s great being pre-qualified because then you know your buying power. You don’t run the risk of falling in love with a home that doesn’t fit your budget or your goals. A pre-qualification can narrow your search and help you focus on what’s important like location or square footage” – Geoff, Regional Sales Manager.
Once you’ve found a home you love, being pre-qualified makes the process even easier and actually can make the buying process smoother and easier.

2| 30-year mortgage is the best option

The typical mortgage style is the 30-year mortgage option that helps keep your monthly payments low, but will extend the amount of time you spend paying back your home loan. According to Scott of FBC Mortgage, a typical 30-year mortgage isn’t always the best option for everyone. There are a range of options from 15-year to variable mortgages that could work better depending on various other factors like your down payment and other home buying incentives.

3| You must put 20% down

The 20% down myth is one of the most prominent out there and is the reason most first-time home buyers feel they need to wait or are discouraged to even start the home buying process. While putting a full 20% down can help lower your monthly payments, there are several opportunities for first-time homebuyers, young professionals, and home buyers in general to get into their dream home with a lower down payment. Some Young Professional incentives even offer as low as 0-5% down for professions such as those in the medical or law industries. Most lenders are up-to-date on all the latest incentives for down payment options and can break each option’s pros and cons down for you.

4| The only upfront cost is your down payment

Speaking of down payments, armed with a lower down payment option, some may rush in expecting to pay for just their down payment at closing only to be shocked at seeing almost 2-3 times that cost. It’s important to learn from your real estate agent and lender what other fees you may see on your closing costs. Other fees can include property taxes, home inspections and insurance and escrow costs, so be prepared to attend your closing with more than just your down payment.

5| The loan/buying process is long and complicated

The search for your dream home can be long if you aren’t sure what you’re looking for, don’t have a real estate agent or aren’t really sure where to start. But with lenders like FBC, mostly everything is done online at your convenience and in a pretty quick fashion, depending on the agreed upon closing dates.
“We offer buyers a smooth and seamless process when they’re buying their home. With ICON, we have a form that allows buyers to get pre-qualified, calculate their payments, and request for approval all on the same site. We offer a hub to get buyers set up and try to take care of as much as we can to make the process easy.” – Scott, Loan Officer, FBC Mortgage
With the dawn of the digital age, submitting electronic paperwork and payments has completely streamlined the process of buying a home.

Check out these resources from FBC and Zillow to debunk more Home Buying myths.