The main concern about becoming a homeowner is affordability, whether that means wondering if you have enough cash in the bank to make the down payment or a high enough credit score to qualify you for home loans.

Whatever myths or rumors you’ve heard about this transition; our purpose is to debunk some of these and help you feel more at ease if you’re transitioning from renting to home owning.

Myth #1 – Buying a Home Means Heavy Debt

It is true that when you buy a home you’ll have to take homeowner’s loans. These can take up to 20 to 30 years to pay off. However, as these loans continue, if you are able to make an extra payment annually, the timeline of paying these off will decrease to 7-10 years.

Similarly, as long as you pay your mortgage, you gain equity in the house, meaning you can eventually pay off other debts or even buy a second home at some point!

Myth #2 – At Least a 20% Down Payment is Needed to Buy a Home

Contrary to popular belief, a 20% down payment is not always needed to buy a home. In fact, there are many different options available for all different types of buyers.

The main reason people assume that the 20% down payment is needed is that if it is not paid upfront, private mortgage insurance payments will be added to the monthly loan payments. However, once the 20% is reached, the buyers will be able to escape the PMIs and release that weight from their shoulders.

Myth #3 – Your Credit Score Has to be Perfect in Order to Buy a Home

Although a credit score of 660 or higher is attractive to a seller, having one that is lower does not mean there isn’t hope.

In fact, buying a home and paying off home loans can actually boost your credit score and your monetary gain. As long as you can make the down payment, most of the time a lower credit score can be forgiven and built up over time, building trust between the seller and the buyer.

Myth #4 – Now is a Bad Time to Buy

Although it seems like a good option to wait for the buyers’ market to be booming and interest seems low, don’t let that stop you from buying a home when it seems best for you.

There is no “right” time to buy a home and there is always an opportunity to find the right one for you, regardless of what the market looks like.

Myth #5 – You’ll be Stuck and Can’t Relocate

Some people are hesitant to buy a new home because of having to stay in one place for a long time. However, buying a home doesn’t necessarily mean this.

Many realtors will encourage their buyers to stay in their new homes for at least 3 years. This will give you the familiarity with the home and the location of the home. After this, though, you can sell your home once the market starts booming again if you decide you would like to move.

If you're ready to stop renting in Madison, it's time to start looking for the right place to call home.