Mythbusters when buying a home

You need at least a 660 credit score to qualify

False, there are many programs that go lower than 660 credit score. Some even as low as 500 depending how much much of a down payment

You do cannot have any debt to qualify for a home

False, debt is calculated into a debt to income ratio. Payments such as credit cards, auto loans, child support/alimony and in some cases student loans are factored into how much you can qualify for.

Inquiries effect your credit

True and False. Yes they can however if you are shopping for a loan and inquiries are made within 30 days of each other will not heavily affect your score since they are small part of your credit. Make sure to pay your bills on time and keep low balances

Down Payment is the only upfront cost


In addition to down payment there are closing costs. They consist of lender fees, appraisal, credit report, title charges, transfer tax 2% split between buyer and seller, recording fees and upfront escrow account set up.

You need 20% down payment to qualify to buy a home

False, there are many programs out there are can help get into a home with as little as 3.5% down or even no money down. Its always best to see which one you would qualify

Its best to find a house then get pre qualified?

False, there are many factors that determine how you qualify. In this hot market knowing how much you can work with helps your realtor know which houses to show you. Realtors can not write up an offer without an preapproval letter which can delay you getting that home.

Its best to close all my open credit cards that I am not using

False. A part of your score is based on how much debt you have and the balances. It likes seeing that you have low balances based on your high limits. DO NOT CLOSE ACCOUNTS