What Does It Take to Buy a Home? Many Don’t Fully Know

Although many Americans feel that now is the right time to buy a home, the results of a new Wells Fargo poll suggest that misinformation is keeping them on the sidelines. About 30 percent of survey-takers believe that only mortgage applicants who earn a big salary can secure financing, and 44 percent believe they have to put down 20 percent on a home purchase. In reality, explains Wells Fargo’s Franklin Codel, many mortgage options have much lower down payment requirements — as little as 5 percent or less, in some cases. Moreover, borrowers who cannot scratch up enough on their own can get a help through a down payment gift. “If we can dispel the common myths and demystify the steps toward homeownership,” Codel says, “we may be able to help more people buy homes and build communities.” | Read More