Buying a home can be a confusing process, especially if it’s your first time. If you haven’t purchased a home of your own yet, you probably know people who have and have heard about their experiences. That being said, you may be hearing from people who have owned their home for a long time and the economy and market is different. Or, you heard from someone who had a really awful experience. Whatever you’ve heard, we’re here to set the record straight. Check out these 5 myths about buying a home BUSTED!
There are many loan options for buying a home, but it seems that majority of people believe the 30 year fixed loan to be the best. While the 30 year fixed loan allows for a smaller monthly payment compared to the 15 year fixed loan, it’s a longer term, and therefore, you’re paying more interest over time. While we understand the 30 year fixed loan typically works for a lot of buyers, we also know that it isn’t ALWAYS the best option for everyone.
While putting 20% down when buying a home allows you to skip the private mortgage insurance (PMI), it isn’t the only option when buying a home. For those eligible, Home Possible is an option. There’s also the option of doing a second mortgage; this option allows you to avoid PMI even if you don’t have 20% down. Furthermore, there are many down payment assistant programs out there, you might qualify for one and not know it.
We get it, lower rates=more money in your pocket. Have you ever heard the phrase: you get what you pay for? Sometimes getting a lower rate also means getting subpar customer service. You want a lender who knows what they’re doing and can foresee issues before they happen so they can be avoided. Since you’ll be with your lender for the length of the loan, you want to make sure that you have a team that’s working on your behalf.
Yes, good credit can make things easier. However, you don’t need perfect credit in order to buy a home. There are other factors that play into buying a home. How much you have in savings and what your debt to income ratio are play major roles too. Be sure to speak to your lender before resolving to renting forever.
Many people think that the seller is required to fix any problem that a home inspection might find. That isn’t necessarily the case. Typically the problems within the home that are safety related are required, other large expenses like a roof repair or new water heater aren’t necessarily required to be fixed prior to selling the home. Additionally, in a seller’s market, there might be less of an incentive for the seller to pay for non-safety related costs. Though, some costs can be negotiated within the selling price of the home.