After spending years in the industry, here are the top 4 myths we've consistently heard that we are here to correct:
Myth 1: You Need a 20% Down Payment to Buy a Home
One of the most common myths about buying a home is that you need to have a 20% down payment saved up. While it's true that having a larger down payment can help you secure a lower interest rate and reduce your monthly mortgage payments, it's not the only option. There are many loan programs available that allow for smaller down payments, including FHA loans and VA loans, that allow you to put as little 3.5% down. Foyer allows members to adjust savings goals and visualize how much savings they need to reach it. First-time-homebuyers may be closer than they think!
Myth 2: Your Credit Score Doesn't Matter if You Have Enough Money for a Down Payment
Many believe that their credit score is not important as long as they have enough money for a down payment. However, your credit score is one of the most important factors that lenders use to determine whether or not to approve you for a mortgage loan and what interest rate you will qualify for. A higher credit score typically translates to a lower interest rate and better loan terms, which can save you thousands of dollars over the life of your loan. It's important to review your credit report regularly and address any errors or negative items before you apply for a mortgage.
Myth 3: You Should Buy the Most Expensive Home You Can Afford
It's tempting to stretch your budget to buy the biggest, most expensive home you can afford. However, this is a common mistake that can lead to financial stress down the line. Instead of focusing on the maximum amount you can borrow, it's important to consider your overall budget and lifestyle goals. A smaller, more affordable home may be a better fit for your long-term financial stability. Our goal is to give Foyer members a better sense of their true home affordability through education. With our upcoming app, members can easily adjust their dream home goals and visualize the assets and monthly expenses that are associated.
Myth 4: You Don't Need a Real Estate Agent to Buy a Home
While it's possible to buy a home without a real estate agent, it's generally not recommended. A good agent can help you navigate the complex home buying process, negotiate with sellers, and ensure that you're getting the best deal possible. Plus, their services are usually paid for by the seller, so you don't have to worry about extra costs. We want to simplify the process of finding a great agent for our members- which can be traditionally overwhelming! Foyer has pre-vetted agents in local markets and can help members connect with them seamlessly.
By debunking these myths and arming yourself with the right information, you can make informed decisions and confidently navigate the home buying process. What can you do next? Join our waitlist to stay up-to-date on our launch in certain states this summer!