Is it the Right Time for Home Buying?



We often get asked, “Is now a good time to buy a house?” The best answer we can give you is, “Yes, but only if you can afford it!” While mortgage rates are currently still low, it’s always important to have your proverbial ducks in a row before jumping into the housing market.

To get you ready for your home buying adventure, we want to first debunk some of the myths that often surround the home buying process*.

Myth 1 – You need a credit score of 700 or more to qualify for a mortgage.
It’s true that your credit score plays a role in both getting your mortgage loan approved as well as the interest rate you receive; however, it is only one of several factors that are taken into account when you apply. Plus with the availability of federally-insured mortgages like FHA, VA or USDA loans, you don’t have to have a perfect score to qualify.

Myth 2 – You must have a 20% down payment
The more money you put down, the better you’ll be in the long run, but it’s not necessary to put 20% down these days. There are many affordable mortgages that allow down payments as low as 3% of the purchase price. We can help you find a loan with the right down payment for your budget.

Myth 3 – If you are denied once, you won’t ever get a mortgage loan.
Just because you were denied for a mortgage in the past doesn’t mean you can’t get one now. Ironworkers USA Credit Union’s mortgage partners will get to know your finances and help you find the right loan program. If you are denied, we’ll work with you to improve your financial situation and get you ready to try again.

Myth 4 – It’s not the right time to buy.
Although you may know someone who has made money on a home purchase or a house flip recently, you should not expect a home to have quick or substantial return on your investment. Your home should be considered a long-term investment. There’s no magic time to buy as interest rates and the real estate market fluctuate – sometimes daily. The best time to buy is when you can do it without getting in over your head.

Myth 5 – Renting is cheaper than owning.
In the short term, renting is sometimes cheaper since rent may be less expensive than a mortgage payment, and you likely have no maintenance or repair costs. If you plan on staying in an area for a long time, homeownership may be a wise choice when you’re ready. Mortgage payments are relatively stable (though property taxes may increase slightly each year) whereas rent payments can rise annually, sometimes with little notice. Long-term homeownership does give you the ability to increase your wealth over time.

If you think it’s the right time for you, then we are here to help you navigate the often confusing path to homeownership. We’re here to help you make the most of your financial life!

To learn more, please contact our mortgage loan officer Logan Rutherford at 503.963.6640 or 800.444.8115 today!

* Information provided by Partners in Balance newsletter – August ‘19


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