Debunking Myths To Home Buying
Finally ready to make the transition into home ownership? That's awesome, and in this exciting time you might be turning to friends and family for an insight into the process. However, there seems to be a circulation of misinformation spreading around, so we're here to clear up a few myths
1. THE FIRST STEP IS SEARCHING FOR A HOME
You know the saying, "Don't put the cart before the horse," well that's important to remember when it comes to buying a home. You don't want to start looking for a house until you have been able to sit down with a lender and discuss what the bank will qualify you for. If you fall in love with a house that's $450,000 and come to find out you're only qualified for $400,000, you can get your hopes crushed and waste a lot of time. Don't start the process on the wrong foot and make sure the numbers line up.
2. YOU DON'T NEED A REAL ESTATE AGENT
For starts, when buying a home, 99% of the time the buyer's agent is paid by the seller. That random 1% can be for odd circumstances. So you're getting to use the services of a real estate agent for free. Having a real estate agent on your side means you'll get to see homes that aren't as readily available
3. YOU CAN'T BUY A HOME WITH BAD CREDIT
Fortunately for some, this is a myth. Lenders can work with credit scores down to the low to mid 500's. Get in touch with an agent to help you connect with the right lender who can help you get approved. However, if your credit score is low, you will be doing yourself a favor if you connect with a credit repair specialist to at least get those numbers in the 600's. A better score will lower your interest rate. There are a lot of factors that go into approvals, but your credit doesn't have to be a sore thumb during the process.
4. YOUR DOWN PAYMENT HAS TO BE 20%
Think you have to sell an arm and a leg to buy a home? Not at all! An FHA loan only requires 3.5% down. And there are conventional loans that only require 3% down. There are a lot of programs that can potentially help you with down payment assistance or be 0% down mortgage. USDA and VA loans are the most popular 0% down programs. If you qualify, this can take a big chunk off the amount of cash you have to bring to the closing table.
5. DOWN PAYMENTS ARE THE ONLY UPFRONT COST
This is one of the biggest misconceptions. There are a lot of costs when buying a home, and that includes upfront costs. A few of those costs are
Now that you have some knowledge to get the process started, get in touch with Katie so that she can help you get through the process as smoothly as possible.