Can I really buy a home?

Have you ever thought this to yourself?  Have you said "I can't afford it" or "I don't have enough to put down" or "They are just too expensive?"  Well, according to Realtor.com there are 6 reasons, false reasons, people say this.

1. I don't have enough for a down payment.  Very few people have 20% to put down. The average price of a home in the low country is around $225K so that would be $45,000.00 in a down payment. I don't know about you but I sure don't have $45K sitting around.  There are so many types of loans out there and this is a perfect time to reach out and talk to a mortgage lender about options. One great option out there is a FHA loan where you only need 3.5% down in order to buy a house. Even with a conventional loan you still only need 5% but remember that a lot of this will depend on your credit score.

2. I can't afford a mortgage payment.  Right now in the Charleston area most rental costs are more than a mortgage payment. Realtor.com has a great Rent vs. Buy calculator on their site you can use to compare and contrast.  If you can pay rent - you can start to build credit and equity and pay a mortgage payment - plus you get tax breaks too.

3. I don't have enough credit history.  So, you have a rough credit score and you're sure you won't get approved. All you need for a FHA is a score of 580 (some lenders require a 620).  You can start today paying down your credit cards, keep a steady job and you can get an application approved.  If not today start working on it now so in 6 months you may have more options. If you have a lower credit score this usually is accompanied by a higher mortgage rate.  It's best to get your score as high as possible so you get a better rate.

4. I don't have a credit history at all.  Maybe you're fresh out of college, just not used credit cards or made a large purchase such as a car. There are ways to start building credit so purchasing a house may not happen today but if you build healthy credit it won't take too long. If you are a renter you can ask your landlord to report your payments and establish credit that way. Experian makes it pretty easy to do.

5. I have not been at my job long enough.  Most mortgage lenders tell me they want you to be steadily employed at one place for 2 years.  Work history is very important to lenders because it shows stability and lenders and banks want to make sure they get paid if they lend you money.  If you are out moving jobs every 6 months there is an issue there and they won't lend you anything. If you move jobs though in the same field and industry and your income has been steady this will be taken into account.

6. I can't find a home I can afford.  One thing I am seeing with buyers in our market is they feel the need to buy a home in perfect, move-in condition.  You do not need to buy your final home right now. Start small and maybe even a fixer upper. Be less picky!  It's better to own a small, starter home now than throw away money as a renter.  Working with a Realtor who is experienced (like myself) will walk you through the process and help you find the right home.