The 5 Most Common Misconceptions About Home Buying

There are many ways to buy a home with little or no money down. You could borrow against a retirement fund, you can withdraw the amount without negative tax consequences, if you're a first time homebuyer. You may qualify for local, state or federal down payment assistance program. There's the Department of Veterans Affairs (VA) , Federal Housing Administration (FHA), and Farmers Home Administration (FmHA). The point is, you have alternatives. First-time buyers may also be eligible for County and State low interest loans and grants.

If you can afford to rent , you can probably afford to buy. When comparing a mortgage payment to a rent check, remember that mortgage interest is tax deductible in most cases. Which may lower the actual annual costs of owning as opposed to renting even after factoring in property taxes, insurance and home maintenance. Ask your tax advisor for details pertaining to your personal situation. There are many types of loans-one just right for you!

Lenders are in the business of making loans. If your past credit history has some irregularities, there are still many loan programs available to you.

Many people mistakenly believe that a short employment history or that being self employed precludes them from qualifying for a home loan. But that's not true in this day and age.

Actually, that's backwards. There are many advantages to prequalifying for a home loan, before the search begins. First, you'll know how much you can afford, and what your payments will be. That narrows your search considerably, saving you time and money.

As a prequalified buyer, you'll enhance your bargaining power with the seller. It shows them you are serious about buying a home and you have the money to prove it.

Once you've found a property, a prequal saves time at closing. There's no extra application paperwork to fill out.

Instead of putting off home ownership and all the money saving benefits that go along with it-as well as gambling that home prices and interest rates won't go through the roof-you could adopt a short term purchase plan.