 TITLE: 5 Homebuying Myths Debunked CONTENT: Myth #4: I Don't Have Enough for a Down Payment\n-----------------------------------------------\nOne of the biggest homebuying myths is that you have to have a 20% down payment. If you have great credit and a reliable source of income, you could qualify for a conventional loan with as little as 3% down. Similarly, qualified borrowers can take out an FHA loan with just 3.5% down. VA loans and USDA loans require no down payment at all.\nJust keep in mind that you'll likely have to pay for private mortgage insurance (PMI) until you've acquired 20% equity in your home, which will increase your monthly mortgage payment. With a conventional loan, PMI can cost anywhere from 0.5% to 2% of the total loan amount. FHA loans charge an upfront premium of 1.75%, plus an annual premium of 0.45% to 1.05% that's broken down and paid on a monthly basis.\nMyth #5: Closing Costs Will Be Outrageous\n-----------------------------------------\nIt's easy for potential homebuyers to get bogged down in all the fees that come with taking out a mortgage. Closing costs vary from lender to lender, but often include charges like the appraisal fee, home inspection fee, loan origination fee and application fee, among other things. You may also be on the hook for charges related to preparing documents, securing title insurance and running your credit.\nOverall, closing costs generally total anywhere from 2% to 5% of the home sale price. They're paid at the very end (at the \"closing table\") when signing all the final home sale documents. Spending 5% on fees alone may give you sticker shock, but again, that may not be your actual total. To be safe, it's best to save up that amount right alongside your down payment if possible. If you end up spending less in the end, think of it as extra money you can put toward other financial goals.  \nThe Bottom Line\n---------------\nWhile buying a home is certainly a huge financial step, it's also a goal that may be more attainable than you might think. The stronger your credit, the better your odds of getting approved. You can check your credit report and credit score for free with Experian so that there are no surprises when you're ready to fill out a mortgage application. END