Myths & Facts

Buying a Home: Myths vs Facts

In todays society there are all kinds of conflicting advice when it comes to home buying… whether it’s from friends, neighbors, relatives or even a simple google search. This can leave you exhausted and confused at what to trust. Well we’ve done the work for you research wise, so you can better understand what is truly involved in the home-buying process. Below we will debunk four common MYTHS and replace with the FACTS:

1. Your Credit Needs to be PERFECT in Order to Buy…
   While majority of people assume you gotta have a high credit score in order to get a mortgage… that isn’t entirely true. If you’re someone who has a less than perfect credit score there is hope for you still, lenders often will work with you. It’s not the ONLY thing lenders look at when evaluating you, don’t get us wrong your credit score will have an impact on the interest rate so it does help, but it doesn’t mean you will or will not get a loan. We recommend reviewing your credit report BEFORE applying, this will ensure that if there are any errors you can report them to the credit reporting bureaus ASAP, and once they’re removed your score is adjusted, then you can apply for your mortgage to get the best rate possible.
   
2. A 15-Year Fixed-Rate Mortgage is Your BEST Option…
   Where a lot of people speak towards a 15-year-fixed-rate being the best option, many people nowadays are opting for a 30-year fixed-rate mortgage. The main reason being they offer a LOWER monthly payment. So, if it’s in your budget to be able to pay more on a monthly basis the 15-year mortgage may still be for you. But be aware that with the 30-year option, you will most likely be paying more during the actual term of the loan even if you’re making smaller payments. Also it might be good to look into an adjustable-rate mortgages, which might end up being what you want to go with, if you don’t plan on staying in your home for the long haul, it could save you money if mortgage rates are low at the time you buy your house. Whichever way you choose to go with we encourage you to look at all the options before deciding what works best for your household rather than going off of what worked for someone else.
   
3. You NEED a 20% Down Payment...
   A VERY popular misconceptions in the home-buying process is that you have to pay 20% as a down payment. This can definitely be a huge chunk of change, and most people think because of this that owning a home is therefore not an option for them until they have that saved. But we’re here to say that there are many first time buyers programs that allow you to put down a LOWER amount. If you qualify for a Federal Housing Administration loan for instance, your payment can be as low as 3.5%, for FHA loans they also feature low closing costs PLUS pretty easy credit qualifications. In addition to this if you are an Active or Retired member of the Military you can apply for a Veterans Administration (VA) loan, which requires NO down payment for those who qualify. So there are options out there you just have to be ready to look for them.
   
4. You don’t need a real estate agent…
   While this one is technically true in the sense of you do not NEED an agent to buy and that it can be done without, for an unexperienced buyer or seller even the buying/selling process can be very complicated and have ups and downs. Plus buying a home is usually one of the largest purchases anyone will ever make in your life, so think you’d want it done right. For an experienced REALTOR® that knows the ins and outs of the local market and has done multiple transactions this can make the process run so much more smoothly. Plus, Agents tend to know all the local connections, like insurance agents, appraisers and lenders who can help make the home-buying process even easier.   Its always best to have a professional in your corner especially when it comes to purchasing your new home. This can take off a lot of pressure and stress of the unknown.

Biggest thing to take away from this is don’t believe everything you hear in passing or from friends and family, always do your own research and look at it from your own households best interest. Even though those we love can have all the best intentions the “truth” couldn’t be more wrong for your own situation. Its our goal as a team to provide the most current knowledge to our clients and those we come across to help better the publics knowledge. As Agents we work very closely with buyers, sellers, builders, lenders and investors to get the best deals possible and make sure you are covered in any and every way.

We hope to have the chance to chat with you about how we can personally serve you and your families.