Buying a home can seem like a massive undertaking. You don’t need to be a first time home buyer to find the process overwhelming. There is so much information available, how can you tell what’s right and what’s a myth? Understanding the difference can help you make the best decision for you and your family goals.
Here are few home buying myths, and the truth behind them.
- The first step is finding the Right House: Before you head out shopping, speak with a lender to understand your financial options and the monthly payment you can afford. There is nothing more disheartening than finding the “home of your dreams,” only to find out it is out of your price range.
- You can’t buy a home without perfect credit: The truth is there are many loans available which still offer reasonable interest rates for those without that ideal credit score. Once again, start your home buying process by speaking with a lender.
- You need 20% down payment: First time home buyers can use FHA financing for as low as 3.5% down. There are other programs too, such as VA and some conventional loans with less than 20% down.
- Interest rates are going up; I can’t afford a home: Back in the 1980’s interest rates were up to 18% and people still bought and sold homes! No matter what the interest rates are, your lender will tell you what you can afford to buy considering principal, interest and tax payments.
- You don’t need an Agent: An agent not only knows the market and can help you with value, but also customary charges, negotiations, and solutions to common hiccups. Your agent will also be your liaison with lenders, Title companies, home inspectors, Home Warranty companies and home contractors.
- New homes don’t need a home inspection: Every home should have a home inspection by a licensed inspector to check for existing or potential problems.
Buying a home is one of the most important financial decisions you are likely to make in your lifetime. Take the time you need to understand the process and learn from the professionals; don’t assume that everything you read is right.
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