Are you ready to make the transition into home ownership? That's awesome! In this exciting time you might be turning to friends or family for insight into the process. There seems to be a circulation of misinformation spreading so we're going 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 very important to remember when it comes to buying a home. You don't want to start looking for a house until you have gotten 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 $250,000 and come to find out you're only qualified for $200,000 you can get your hopes crushed and waste a lot of time. Don't start the process on the wrong foot, make sure the numbers work and you're comfortable with them.

 

2. YOU DON'T NEED A REAL ESTATE AGENT

 

When buying a home, typically the buyer's agent gets paid by the sellers. 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estate agent on your side means you'll get to see homes that aren't as readily available on public searches, you avoid outdated listings and scammers (there are lots of them), and you have protection when it comes to navigating the legalities of contracts and buying a home. Why wouldn't you want an incredible negotiator working to ensure you get the best from the transaction? For FREE!

 

3. YOU CAN'T BUY A HOME WITH BAD CREDIT

 

Fortunately for some, this is a myth. Lenders and banks come by the hundreds of thousands and all though there are a few loan options, a lot of lenders can work with credit scores down to the low to mid 500's & will provide you with a game plan on ways to improve your credit so that when the time comes you can earn a better rate. Connect with the right lender who can help you potentially approved. We can offer you suggestions on great lenders we trust to help you. There are a lot of factors that go into approvals. An excellent lender will be able to advise you on a game plan and help make sure you're comfortable with future payments. 

 

4. YOUR DOWN PAYMENT HAS TO BE 20%

 

Not at all! There are low down payment options such as a FHA loan might only requires 3.5% and a conventional may only require 5%. There are a lot of programs that can potentially help you with down payment assistance or be a 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 is a lot of cost that goes into buying a home, and that includes upfront costs. One of the mandatory ones are an appraisal & some loans require a termite inspection. If you are getting a mortgage, the home will have to appraise. Termite inspections can range between $100-125. An appraisal can range from $450-$700 dollars. Aside from your down payment, you then have to pay for closing costs. Closing costs can range anywhere between 3-6% of the purchase price. Often this can be negotiated for sellers to cover by rolling into the offer price, but whether that decision is smart to do or not when it comes to landing your dream home will need to be discussed with your agent.

 

Now that you have some knowledge to get the process started, get in touch with us & we will help you get through the process as smoothly as possible!