Uncovering the Truth About Home-Buying Myths: What You Need to Know Before You Buy

Home buying can be an exciting but frightening experience. You may seek advice from friends and family who are homeowners, but beware, not all advice may be accurate. In this article, we will debunk some common home buying myths.

Myth #1:

The first step is looking for a house. Wrong! Before browsing homes, ensure that your credit is in good shape and get pre-approved for a mortgage. This determines your home budget.

Myth #2:

A 30-year mortgage is the best option. While monthly payments for a 30-year fixed-rate mortgage are lower than its 15-year counterpart, you may end up paying more during the life of the loan. Consider other loan plans, including an adjustable-rate mortgage.

Myth #3:

Your down payment must be 20%. No. Many lenders approve loans with as low as 3.5% down, and there are several options for down payment assistance.

Myth #4:

The only up-front cost is a down payment. False. The seller might determine that you're responsible for closing costs, which can be anywhere from 3% to 6% of the purchase price. And don’t forget the fees, taxes, and other costs for inspections, credit reports, insurance, among others.

Myth #5:

You can’t buy with bad credit. If you’re looking to get a conventional loan, having bad credit may not work, but FHA loans require only a 3.5% down payment, and borrowers with low credit scores can qualify.

Myth #6:

You don’t need a home inspection. Don’t do it! Waiving a home inspection means getting the home as is, including any and all problems that come with it.

Myth #7:

The asking price is set in stone. False! The offer you make on a house does not need to be the asking price. If you have nice credit, pre-approval, and a down payment ready to go, sellers might be more willing to negotiate.

Myth #8:

You don’t need an agent. False! Let a trained professional handle the home buying process, from negotiating to finding the perfect home and completing all the contracts and paperwork.

Myth #9:

Schools don’t matter if you don’t have kids. False! The neighborhood you choose matters. Even if you don’t have children, good schools could be a sign of a good neighborhood.

In conclusion, do your research and consult professionals in the home buying process to avoid falling prey to these myths. Don't rush into making decisions and ensure that your choices align with your budget and long-term goals.