BMI Federal Credit Union
Three Big Myths Keeping You from Buying a Home
Home ownership feels like a thing of the past in the post-recession era. Although the economy has recovered considerably, it has also changed forever. More and more professionals are making a living via freelance consulting work. Many who would have bought a house in the 1990s are now living with roommates. We're working two or three part-time jobs instead of pursuing a single career path.
This doesn't mean that you can't buy a home. Here are three major myths holding potential homeowners back.
Myth 1: I Couldn't Be a Homeowner
If you think that you can't be a homeowner, the question is: Why not? Bad credit? Low income? Don't want to break your lease? Are decent homes simply too expensive? Whatever your answer, you may find that you are overestimating the obstacles before you.
Myth 2: I Couldn't Be a Homeowner Without a Lifetime of Bad Debt
If you go through a traditional bank and take whatever deal you're offered, yes, you can expect high-interest debt. If you go through a credit union and look at the loans available for somebody in your position, you may be pleasantly surprised.
Myth 3: Any Good Home Is Out of My Price Range
If you're talking about the $2.5 billion dollar mansion that Jay-Z and Beyonce just got outbid on, then it might not be easy to gather the funds for a down payment. If you consider a more practical home, then you may find that the features you would want in a good home are much more accessible. At a bare minimum, you want a home in decent condition that isn't in a bad neighborhood. Add to this whatever features are most important to you — for example, rural or suburban, in close proximity to a school, or a bicycle ride away from the grocery store so that you don't have to drive too frequently. There are homes available where 20- or 30-year mortgages will result in monthly payments that are lower than a month's rent for an apartment in the same neighborhood.
One point regarding home ownership that we cannot dispel: It's not always easy.
Learn How to Become a Homeowner
Even when you find that you can cover your monthly payments and even when you find a home within your price range, it's still possible to get stuck with a bad mortgage. It's also still possible to wind up in a money pit that begins to fall apart as soon as you move in. That's where BMI Federal Credit Union Workshops and Seminars come in. At our home buying workshops, you can speak with experienced, qualified professionals who can help to walk you through the steps and determine how to get into a home of your own. You'll learn about:
- Your credit union's role
- Determining your budget and reviewing options
- Home inspections
- Title insurance and the closing process.