Germantown MD | 2 Myths Holding Back Home Buyers


At a local level in Germantown Maryland, buyer confidence remains strong with some changes that varies on the price level and what type of houses they are looking for. 

As you are aware, for most families, choosing a new home is the biggest financial decision they will ever make and for that reason, there are many complicated decisions involved in choosing your new home. 


Today I would like to talk to you about  2 Myths Holding Back Home Buyers


In’s recent article, “Home Buyers’ Top Mortgage Fears: Which One Scares You?” they mention that “46% of potential home buyers fear they won’t qualify for a mortgage to the point that they don’t even try.”


Myth #1: “I Need a 20% Down Payment”


Buyers overestimate the down payment funds needed to qualify for a home loan. According to the First Quarter 2017 Homeownership Program Index (HPI) from Down Payment Resource, saving for a down payment was the barrier that kept 70% of renters from buying.


Rob Chrane, CEO of Down Payment Resource had this to say,


“There are many mortgage-ready renters today, but they don’t know it. Often, homebuyers remain sidelined for years due to the down payment.”

Many believe that they need at least 20% down to buy their dream home, but programs are available that allow buyers put down as little as 3%. Many renters may actually be able to enter the housing market sooner than they ever imagined with new programs that have emerged allowing less cash out of pocket.


Myth #2: “I Need a 780 FICO® Score or Higher to Buy”


The survey revealed that 59% of Americans either don’t know (54%) or are misinformed (5%) about what FICO® score is necessary to qualify.


Many Americans believe a ‘good’ credit score is 780 or higher.


To help debunk this myth, let’s take a look at Ellie Mae’s latest Origination Insight Report, which focuses on recently closed (approved) loans.

As you can see in the chart above, 53.2% of approved mortgages had a credit score of 600-749.


Bottom Line

Whether buying your first home or moving up to your dream home, knowing your options will make the mortgage process easier. Your dream home may already be within your reach.


To protect your interests and assure that you make the best possible decisions, 

it's important that you have a knowledgeable agent on your side who is an expert in the local real estate market.


We are dedicated to keeping you on top of our local market. Rest assured that we will provide you with a well-informed, 

and the most updated strategic view for your home purchase in Germantown Maryland


To reach us, please call 301-246-0001

or send us an email


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