Uncovering the Truth About Home-Buying Myths: What You Need to Know Before You Buy
Buying a home can be one of the most significant investments of your life, and it's important to make informed decisions throughout the process. Unfortunately, there are many myths and misconceptions surrounding home buying that can lead you astray. These common myths can be particularly problematic for first-time homebuyers, who may not be familiar with the ins and outs of the process.
In this article, we'll take a closer look at some of the most pervasive home-buying myths and debunk them once and for all. From the idea that you need a 20% down payment to the belief that you can't get a mortgage with bad credit, we'll set the record straight on these common misconceptions. So whether you're a first-time homebuyer or a seasoned veteran, read on to learn the truth about home buying and avoid falling victim to these myths!
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.
Top 9 Questions Home Buyers Ask - Everything You Need to Know
Buying a new home can be both exciting and overwhelming, and it’s natural to have questions about the process. As a real estate agent, I’ve helped many first-time homebuyers navigate the process, and I’ve noticed that there are certain questions that come up again and again. In this article, I’ll answer the top nine questions that homebuyers ask, so you can feel more confident and informed as you embark on your home buying journey.
Buying a home can be a daunting experience, especially for first-time buyers. In this blog post, we'll cover the top 9 questions that many home buyers ask. From getting started to receiving the keys, we'll provide detailed answers to each question to help you navigate the home-buying process with confidence.
How do I get started?
The first step in buying a home is getting pre-approved by a lender. This will give you an idea of how much home you can afford and whether you qualify for a mortgage.
How long does it take to close on a home?
On average, it takes about 30-45 days to close on a home. This timeframe can vary depending on the complexity of the transaction and other factors.
What does my agent do?
A buyer's agent will negotiate on your behalf and manage the closing process from start to finish. They will help you find homes that meet your criteria and guide you through the offer and negotiation process.
How much do I pay for a buyer's agent?
You don't have to pay anything for a buyer's agent. The seller's agent shares their commission with the buyer's agent. In Greensboro, the commission rate is typically 6% of the purchase price, which is split between the two agents.
What credit score do I need to qualify for a mortgage?
Most home loan programs require a minimum FICO score of 620. It's best to speak with a lender to determine your specific requirements and options.
How much money do I need for a down payment?
The down payment required varies depending on the type of loan you choose. Some loans, like VA and USDA loans, don't require a down payment. Others start as low as 3.5% down. Your lender can provide you with more information on all available options.
What other fees will I need to pay?
In addition to the down payment, you'll need to pay closing costs, which typically range from 2-4% of the purchase price. Other fees may include inspection fees and loan origination fees.
When will I receive the keys?
You'll receive the keys to your new home once the closing has been recorded with the register of deeds, which typically happens on the same day as closing.
What's the best advice for home buyers?
Hire a knowledgeable real estate agent that you trust and ask lots of questions! A good agent will guide you through the entire process and ensure that you make the best decision for your needs.
Buying a home can be overwhelming, but by understanding the top 9 questions that many home buyers ask, you'll be better prepared to navigate the process. Remember to work with a trusted agent and lender, ask lots of questions, and take your time to find the perfect home for you.