MythBusters: The Home Buying Edition
Buying a home can be stressful. There are tons of resources online that can aid in your search. Unfortunately, though, everything that you read online isn’t true. There are quite a few home buying myths out there that can make your home search a little harder. No worries though. Keep reading to discover five home buying myths to avoid when on the hunt for your forever home.
You Don’t Have To Break The Bank
A very common homebuying myth is that you have to have a substantial amount of money for the down payment of your new potential home. That is far from true. Although a 20% down payment would help, it is not a necessity. Instead, search for a low down payment program or homebuying loans that do not require a down payment at all.
Many people mistakenly think their loan pre-approval limit indicates exactly how much they can afford. Unfortunately, that is not accurate. When applying for pre-approval the lender only looks at a few factors. They don’t get into the nitty-gritty until it’s time to close on your home. Try to avoid selecting a home at the top end of the pre-approval. Leave yourself wiggle room to make sure that you are definitely able to afford your monthly mortgage payments.
Hard Work Never Stops
You’ve put a home under contract. All of the hard work is done now, right? Wrong. This is when things really get rolling and the out-of-pocket expenses rear their head. The home inspection and pest inspection are vital. You have to do your due diligence to make sure your potential home is a good buy. In most cases, you won’t get approved for a loan if you don’t.
Credit Scare Nightmare
People often say, “you only need a credit score of 580 to purchase a home.” That actually isn’t a myth. However, it’s also not a smart decision. Just because you can buy a home with that credit score doesn’t mean that you should. The higher your credit score, the better your interest rate. If you have a good interest rate then your monthly mortgage payment will be more affordable.
Negotiate For What You Want
Some selling agents may say that a home is being sold as is. Remember this, everything is negotiable. That’s really what homebuying is. A big negotiation. Try to get as much from the sellers as you can. If the home needs some repairs, have your agent add it in the contract. See about having the seller pay closing costs. Keep in mind that at the end of the day, they want to sell the property. Therefore, they will do what needs to be done to make that happen.