This is a myth that dates all the way back to the redlining era. While having a large down payment can help you go bigger, it’s just not required. Right now, the average down payment is only about 6% and plenty of tools can bring that lower or even zero it out. Check out some of Central Ohio’s down payment tools or connect with a housing counselor to see what is best for you.

Columbus options are constantly changing with new homes coming and going all the time. But if all you’re looking at are free, public “marketplaces” (like Zillow or Trulia), you may only be seeing a slice of what’s happening. A real estate professional who knows how to navigate hot markets and can tap into other databases can help and see your full range of options.

It’s absolutely possible to buy a home while paying down your student loans. 37% of first-time mortgage borrowers have student loans. Although lenders will review your debt and income to be sure you can pay your mortgage, the requirements around student loans vary by program. So, it’s best to talk to a lender or housing counselor to see what you’re eligible for before getting discouraged.

Not true. Credit cards will affect your credit, so keeping up on payments and making sure your balance doesn’t get too large is important. But when lenders review your debt, they’re not looking for a zero-balance, just proof that you will be able to pay your mortgage. If you are worried about debt stalling your homeownership journey, consider starting with a credit counselor that can help you get on the right track.

Your credit score is important, but the minimums change depending on the kind of loan you want. Those with a lower score may want to consider loans from the Federal Housing Administration (aka the FHA), which can be more forgiving of credit hiccups. There are lots of different loan types, and new programs emerging all the time, so it’s best to talk to a housing counselor to get a custom analysis. And if you need to boost your score or manage your debt, credit counselors can help you get positioned for success.

Almost half of borrowers do not shop around for the best deal, and that’s a huge mistake. A study found that Columbus borrowers who shop around for a mortgage could save over $54,000 over the life of their loan. Freddie Mac recommends borrowers get quotes from three to five different banks, brokers, and credit unions to see a range of options. Shopping rates on the same day lets you get an apples-to-apples comparison, and shopping rates within a 45-day window makes sure there’s minimal effect on your credit.

Your mortgage payment is just a big math problem. You can craft a monthly mortgage payment that’s less than your rent by finding a less expensive home, a better interest rate, or increasing your down payment, for example. It’s also important to remember that a mortgage gives you more control over cost increases that can be difficult to predict when you rent. And your mortgage payments build value for you, while rent payments build value for your landlord. Explore your options on our mortgage calculator now.

When armed with multiple offers, you can ask your preferred lender to match another bank’s rate, waive fees, or discount closing costs. Just watch out for tradeoffs (getting a break on your interest rate might not be worth it if it also increases your fees). If you’re able to bring more money to the closing table, you can also discuss how an increased down payment could sweeten your loan terms. See some of the down payment programs working in Central Ohio.

The interest rate is important, but comparing fees and other terms is a smart move. That’s why comparing APR (Annual Percent Rate) is so helpful. The APR is like an interest rate but it also captures the cost of fees, discount points, prepaid interest, private mortgage insurance, and other charges. If this feels like new territory for you, housing counselors are always free to help you understand what’s the best deal for you and your family.

That’s risky. A well-made housing budget – where your monthly payment is 30% of your income or less – sets you up for long-term success and helps you weather whatever storm may come. Most buyers opt for a house with good bones that they can perfect over the years. For more adventurous buyers, there are renovation loans that let you buy your home and finance repairs at the same time. The Fannie Mae HomeStyle® Renovation loan, Freddie Mac CHOICERenovation loan, and FHA 203k loan are just a few options that let you renovate fixer-uppers that are often priced below the market. Remember, repair costs can be hard to predict and finding reliable contractors and managing the inspection process can be weighty, so working with a housing counselor in advance can help you feel in control.

Never get a loan that you can’t afford to live with until it’s paid off. When it comes to refinancing, there are too many variables that are beyond your control to make it worth risking your home and your credit. If you are weighing options that you worry aren’t sustainable, it’s time to talk to a housing counselor.

There are lots of different programs that exist, with lots of different purposes. Some are to expand homeownership to households with lower incomes, but others are to help revitalize communities, incentivize certain activities, or correct past wrongs. The bottom line is: if you’re eligible and entitled to it, don’t leave money on the table. Find out what works for you.