Home Buying Myths Debunked

Home Buying MythsSearching for a home can be hectic and time-consuming. Here are six home buying myths uncovered

Buying a home is a dream of many people, there’s nothing like owning a place you can call your own. Most people think that the process is easy and hassle free, but after reading this, you will know the six home buying myths most people believe.

Search For a Home Then Contact Your Realtor

The worst thing you can do is fall in love with a home that is not within your budget, and this is a home buying myth people often do. Contact your realtor and check your credit to make sure it’s in good condition. Get pre-approved for a mortgage so that you can determine your budget for a home.

A 30-year Mortgage Is The Best Option

Choosing a 30-year mortgage over the 15-year mortgage is a home buying myths that looks like you are paying less, but over the years you will be paying double with all the borrowed money due to the interest rate. If you aren’t set on staying in your house for the long haul, consider other loan plans or an adjustable rate mortgage.

The Only Upfront Cost Is The Down Payment

This is a big home buying myth. You are responsible for closing costs and, depending on your state, the closing price can vary. There are several fees, taxes, insurance and other inspection costs for you to consider. Communicate with your realtor so there are no surprise fees on the day you sign the papers to your home.

Your Down Payment Must Be 20%

Although placing a 20% down payment is ideal to avoid the private mortgage insurance it is a home buying myth. Many lenders will allow you to pay loans with 10% or 5% down as long as you pay the PMI. Speak to your lender for options that you can do to lower the down payment.

You Can’t Buy a Home Without Perfect Credit

As one of the most common home buying myths, it states that you need to have a credit score above 700 purchase a home. Although a good credit score will make it easier for you to get a loan with a lower interest rate, other factors like credit history with your lender, and the amount of debt can also determine whether you can find a loan. Check your credit score to see if you have good or bad credit, and speak with your realtor for your options.

The Asking Price Is Set In Stone

The offer you make on the house does not have to be the asking price; that is one of the home buying myths some realtors would like you to believe. Depending on your credit and down payment, the seller might be willing to negotiate the price. Inspect the house and use that to your advantage; if you find any issues that can be used to lower the price.

After you’ve uncovered these home buying myths, you have now almost become an expert in buying a home. Book an appointment with me so I can guide you to the right home for your family.

Tags: ,

Leave a Reply

You must be logged in to post a comment.