Myths you should know before you buy a home
Purchasing a home is both an exciting moment in anyone’s life, but also, without a doubt, a stressful period too. This is why you are probably tempted to take into account any type of info that you receive. Unfortunately, myths are widespread among newbie home buyers and can get to influence even a firm decision. The safest way not to fall into any type of trap is to be aware of the most common ones.
So, get ready to find out the most common myths you may come across in your attempt to buy a home!
How to buy a home without risks!
There is no doubt that getting to believe the most common real estate myths can seriously get to affect your budget in case you are trying to buy a home. One quick way to stay out of trouble – read the following myths and try to stay with both feet on the ground.
- Being a home owner can be more expensive than being a tenant
Not true, and the simplest way to find out the truth – do the math! In certain markets, having a home and paying mortgage can be as affordable as paying a rent. Have in mind: mortgage rates don’t change, while the rent may vary.
Depending on the region, the state of the market and the mortgage that you want to apply for, you can easily get to be aware of the real numbers and not just ‘common beliefs’. As this is probably one of the most controversial topics linked to buying or renting a home, study the matter attentively before you start believing a non-sense that can affect your future lifestyle.
- Lenders enjoy making you wait and lose time
Wrong! The fact is that the entire process of reviewing your application takes time. Think about it – confirming your job, income and assessing the value of the property you want to purchase may take sometimes more time than you initially expect. Therefore, in order to stay informed, ask the lender to give you the info that you require!
- The seller is obliged to make the repairs mentioned in the Inspection Report
Let’s clarify something once and for all, the seller is not compelled to do anything unless you have both signed an agreement. However, the Inspection Report will provide enough info that the buyer can use to negotiate the price based on the needed repairs.
- The asking price will also be the selling price
The asking price may or may not be the selling price. This mainly depends on the two players: the seller and the buyer of the property. Once an offer is made, the seller may accept it or not; he/she may stick to the price until the house is sold or, on the contrary, may decide to lower the price. While, you’ll hear from time to time all sorts of confusing info, the key is to never let anything unclarified; ask your real estate agent for support!
- You should get the biggest mortgage you can
Bigger doesn’t always mean better! A bigger mortgage also implies more monthly expenses for you too. As a result, the best thing would be to get the mortgage that you can really afford! Stretching your budget too much will only make you feel stressed and therefore seriously affect your lifestyle.
All things considered, if you want to buy a home, you need to be aware of several myths that otherwise might actually cost you a pretty penny! Stay informed and get an experimented real estate agent to support you to make the best decisions!
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Good point about the cost of ownership versus renting. One thing that fuels this perception, I think, is the large downpayment that is required under most conventional loan programs. Fortunately, FHA offers a very low downpayment.