Are you considering taking the leap to homeownership? Congratulations! It’s so exciting to start shopping for a new home. But, buyer beware! There is so much information available on home buying, you may find yourself overwhelmed. We’re here to help – check out these first-time home buying myths, and start your search armed with good information!
First-Time Home Buying Myths
30-year fixed mortgages are always the best option. Hold on, not always. Consider how long you want to be in the home. If your current plan is to move after a few years, or you anticipate a job change that might require it, a shorter-term fixed rate loan might serve you better in the long run. A reputable mortgage lender can give you advice on the best loan for your short and long-term needs.
You need a 20% downpayment. Good news: Nope! It’s a good idea to save as much as possible in the months leading up to buying a home, but there are many loan options available that don’t require that large a downpayment. The Federal Housing Administration (FHA) and Veterans Affairs (VA) loans are two possibilities for mortgage loans that don’t require 20%.
You need perfect credit. Good news: you don’t need perfect credit, either. A good score can potentially make it easier to get a loan with good terms, but there are other factors involved in obtaining a mortgage loan. There are options available even if your credit is less than perfect. To learn more about the loan process and which loan might be best for you, check out this article from Bankrate.com: Which Mortgage is Right For You?
Optional home inspections. DO NOT waive the inspection in order to nail down a deal. It’s tempting when you’re excited and want to hurry the process along, but an inspection can uncover serious problems with the home that could be a deal breaker, or you may discover that any issues found will give you some leverage in negotiating the final price.
You don’t need an agent. One of the biggest first-time home buying myths is that you don’t need a real estate agent. It’s really tempting to take a look around and think, “How hard could this be?” but there are legal considerations, negotiations, mountains of paperwork, and an agent may have information and/or access to properties that may not be listed quite yet. A licensed agent knows what’s going on in the local and national real estate markets, and can guide you through the process start to finish. We get excited when you find the home that’s just right for you, and we want to make sure you get the best possible price.
We know there is a huge mix of emotions that go into buying a home: excitement, anticipation, maybe even a little fear. The best advice we can give you is to start planning ahead well before you start shopping for a home. A little planning goes a long way toward making one of the biggest purchases of your life a smart one!
We’re ready to help you!
Contact us today and get started on making your dream home a reality.