Lynell Holden
Real Estate Specialist

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10 Home Buying Myths

As a Real Estate Broker and having serviced many happy clients in Northern and Southern California, I hear all of the common misconceptions that buyers have been told. Of course you are going to be dealing with the nay-sayers, and the people who misguide you because they are not in the business or they read it on some website. Look don't take the advice or your uncle/aunt who used to sell homes 20+ years ago. Things have changed since then, they change every year and plenty of times throughout the year.

I love talking to buyers and educating them on what's happening now. I love easy their mind with what's expected of them, and what they are up against, so that purchasing a home is not a big mystery. So I put together a list of some of the common homebuying myths that I have heard over the many years of servicing the real estate community. 
  1. Don't you have to have a 800 credit score? No way you don't need an 800 credit score, if everyone needed an 800 credit score then no one would own a home. There are plenty of programs out there that will allow you to have credit scores even as low as 600. You will just pay more than someone who has a 680 credit score, but it is possible for you to purchase a home. 
  2. I thought I had to be on my job for atleast 10 years. That's not true either, a lender only needs to see that you have worked on the same job for atleast 2 years and if you change jobs within that time frame, you just need to change to the same career field for that income to look consistent. For example you can't be a truck driver for 6 months and then change your career to a baggage handler. These are two totally different career paths. This doesn't look good to an underwriter who is checking to make sure that you have stable income. 
  3. Do I have to make $75,000 or more per year to buy? Nope, there are plenty of people who make a lot less money than that and purchase all types of properties. They may or may not have to have a co-signer, but of course it all depends on your credit, debt to income ratio, money saved, and where you want to purchase your home.
  4. Don't I need to put down 30% - 40% down as a down payment to purchase? Definitely not, the only time when you have to put down approximately 10% - 20% will be when you investing into a property that you WILL NOT occupy. So this means that you will purchase this property as an investor. Investment, or second home properties are considered more of a risk for lenders because if something happens financially for you, it is easier for you to stop paying on your mortgage on a home that you don't live in, than a home that you actually reside in. 
  5. I was told buying a condominium is bad? Look the type of home that you purchase is definitely up to you. However I will be there to consult and guide you down the right path. It really depends upon your goals. I own a condominium, it was the best thing that I ever could have done for my family. Sometimes everyone can't purchase a brand new or dream home for their first home. Sometimes you just need to get your Foot In The Door! Whatever you choose, I will be here to help you make the best decision that's right for you. 
  6. Won't I loose my house if I miss my mortgage payment? Typically that is not the case. It all depends on what your agreement is with the lender. Generally you have atleast 90 days before some sort of action will be taken against you if you default on a property. However there are some exceptions (HARD MONEY LOANS) depending upon what your loan payments, mortgage note say. Check with your lender to truly understand the terms of your agreement. As a tenant, you receive a 3 day notice to pay or quit, as a homeowner there are programs that can help you pay your mortgage or you could possibly get a forebearance, or loan modification possibly. 
  7. I thought I had to be 45-50 years old to purchase a property? Certainly not, you only need to legally be an adult which is 18 years of age to sign a legally binding contract to purchase real estate property. 
  8.  My bank told me that I shouldn't have anyone else run my credit because it will make my credit score go way down. It is in your best interest to shop around for the best rate and terms for you. Lenders don't really want competition, so some of them may tell you that. However it is ok if you run your credit through a mortgage lender within a 30 time period and it will only count as one small dip in your credit. Remember if you don't let the lender run your credit, you wont know what you qualify for. So do your homeowork and find the best loan and program that works for you. 
  9. I'm in the military so why should I buy, I move a lot? Well one of the best investments that you could ever do besides stocks. bonds, and life insurance is to purchase a house. Your home keeps you warm, let's you borrow from it when you need money, you can pay for college education, vacations, cars or just put money in the bank. Can you do that with renting? NO. Also if you wanted to you could rent out a room or the whole house and make money from it no matter where you PCS to in the world, you could do so. Plus when your deployment is over you always have a place to call home. 
  10. It's COVID-19, no one is buying homes. Just the opposite, more than ever since interest rates are at an all time low, renters are becoming savvy and realizing that there are no guarantees being a tenant. They want to ensure that their families have a roof over their heads. They have saved, and are ready to get on the train to homeownership, no matter what it takes. There are more buyers looking to buy than what we have in inventory to sell. Don't wait until it's too late! 

This is only a handful of the myths that I have heard over the years. Don't believe what you hear at the watering hole. Take it from me a 15 year real estate expert servicing both Northern and Southern California to many happy clients. Trust me, I won't lead you down the wrong path.

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Lynell Holden 
Broker & Owner of Holden Homes Realty
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23945 Sunnymead Blvd
Moreno Valley, CA 92553

DRE# 01729482

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