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Homeownership, once celebrated as the quintessential "American Dream," represents not just a physical space but a profound milestone in one's life journey. With our personalized banking solutions tailored to meet your unique financial goals, we partner with you every step of the way. So we sat down with our Vice President, Senior Mortgage Sales Manager, Donnie Fatobene, to discuss common homebuying misconceptions that he and his team hear often.
"I need a 20% down payment to buy a home."
But the truth is, there are a number of programs that require little or no down payment. That number is a guideline from decades ago, not a requirement. Many buyers today purchase with far less—some conventional loans allow as little as 3% down, and programs like FHA, VA, and USDA offer even lower options depending on eligibility. The real key is understanding your financing choices, not hitting an outdated 20% target.
"I have to have perfect credit, or I need to payoff and close accounts."
A lot of people believe they need perfect credit or that they should pay off and close all their accounts before they can buy a home. That simply isn’t true. Lenders work with a wide range of credit scores, and in many cases, keeping accounts open actually helps your credit by preserving your history and lowering your utilization. The goal isn’t perfection - it’s stability, responsible use, and a plan that fits your financial picture.
"I should wait until the rates come down."
While lower rates do mean a lower monthly payment, a decrease in rates could result in an increase in buyer demand which could drive up home prices and offset some of that benefit. A 0.5% difference in rate on a $300,000 loan is $98. If you can afford the $98, why wait? You can always refinance if the rates come down in the future.
"Renting is cheaper than owning."
While it may be true that up-front investment and initial monthly payment will be less than buying, you’ll miss out on building wealth through your home appreciation. Also, your mortgage payment can remain fixed while a landlord may increase rent year after year.
"I can’t afford a mortgage because I have too much debt or student loans."
How much you can afford is determined by your current monthly payment obligations and an estimated mortgage payment in relation to your gross-income. If you can afford making a rental payment, you may also qualify for a comparable mortgage payment.
Let us help you take the next step - Stop into your local branch today!
