Buying a home may be easier than you think. There are some common home buying myths that may discourage you from pursuing your dream of home ownership. The truth is though, there are many programs in place to encourage people to buy homes– especially for first time buyers. Check out these three home buying myths and you may feel a little better about your dream!

The first step is to find my dream house

It can be fun to look through listings and pick a home that matches your tastes perfectly, but, it is not the first step if you are serious about buying a home. The first step is to seek out a lender and/or real estate agent. If you do not know a good lender, but you do know of a good real estate agent then that agent most likely has a handful of lenders that they have dealt with and can recommend. It is important to go over your financial information with a lender first because you need to be able to shop within your budget. If your dream home costs $500,000 and you can only qualify for a $400,000 loan, then you have just set yourself up for a heart break.

How much you can borrow depends solely on your income

Income is definitely considered when you apply for a loan, but so is your debt. Income quite often is not the determining factor as much as the ratio of debt to income is. For example, someone who makes  $70,000 a year and has $30,000 in credit card debt may have a harder time getting a loan than someone who makes $50,000 and carries no debt.

You need a 20% down payment

There are definitely advantages to coming up with a 20% down payment. Your monthly payments would be lower, you could get a better interest rate, and you may have more lenders to choose from. The advantages are there, but if you just can’t come up with that much up front, there is still hope! There are many programs available that can either assist you with your down payment through grants, or, different types of loans that do not require such a hefty down payment. Nevada has a number of programs available.

It is important to have an experienced and knowledgeable agent by your side. Lisamarie Wand is experienced and knowledgeable in residential real estate, commercial real estate, and property management. Contact her today with any questions you may have.