Let's face it. Buying a home can feel like a daunting process. There may be so much you don't know and you want to get the best advice. There is a lot of good but also bad information out there. Here are 9 home buying myths to help you if you are in the market for a new home!
Your First Step is Starting Your Search: This could actually lead to a lot of frustration, confusion and heartbreak if you don't make sure your finances are in order first. Always check your credit, get pre-approved from a lender and run the numbers to know what you can afford.
30-Year Mortgages are Always the Best Option: 30-year fixed mortgages compared to 15-year fixed mortgages have lower monthly payments which might seem like the best deal. However, the reality is with a 30-year mortgage versus a 15-year mortgage, you are actually paying MORE in interest over the loan term. A 15-year mortgage isn't always a viable or the best option for everyone, but be sure to look at all of your options and compare the pros and cons of the different loan types.
You Have to Have a 20% Downpayment: Sure, having 20% down will eliminate the requirement for PMI (private mortgage insurance). But if you cannot afford or do not want to put 20% down, you may qualify for a lower downpayment amount - but you would likely have to pay monthly for PMI insurance. It's also a great idea to check and see if you qualify for any downpayment assistance programs that may be available.
Your Downpayment is Your Only Upfront Cost: Unfortunately, when buying a home this is not the only upfront cost you will encounter. Buyers will incur inspection fees and closing costs which can include insurance, fees, taxes and more.
You Must Have Excellent Credit: There are certain programs including the FHA loan which can help buyers with less than perfect credit qualify for a loan.
You Don't Need to Have a Home Inspection: This is a big one. We always, always recommend that our buyers get a home inspection performed. They can be expensive and typically cost hundreds of dollars, however, they can uncover problems that you did not know were there and can end up saving you countless heartache and expense later.
The Asking Price is Not Negotiable: It is absolutely negotiable! So many parts of a real estate transaction are negotiable depending on the situation.
You Don't Need an Agent: Agents are critical for helping through the transaction. They have a special set of knowledge and skills to help you negotiate, move through the process and have your best interest in mind throughout the transaction. There are a lot of nuances and ins and outs to real estate and having a professional represent you can make the process so much smoother!
Neighborhood Doesn't Matter if You Don't Have Kids: Neighborhood amenities, proximity to schools, walkability - all of those can be fantastic for resale. Even if you have no intention of moving, all of these factors can impact your home's value and enjoyment of your home.