It has been said that every five years, our housing needs change. Much of that change is dependent upon family wants and needs, along with the factorsyou want to consider in making a house your home. The following are a few common questions I frequently get asked when someone is considering purchasing a house (either trading up or scaling back). Even if you intend to stay put, educate yourself on these common home buying myths, for your next neighborly curb-side conversation regarding the fine art of buying a house.
Myth #1: The first step to buying a home is to start looking. Browsing for homes is fun but you run the risk of setting your heart on something, only to have it broken. Make sure that you first get pre-approved for a mortgage before you embark on your home-buying journey, this will determine how much you can afford. This oftentimes includes assessing the value of your current home.
Myth #2: Your down payment must be 20%. While a 20% down payment is ideal so you can avoid that pesky private mortgage insurance (PMI) payment, there are a variety of loan programs to help you get into the home of your dreams for much less. If you qualify for an FHA loan, you can get into a home for as little as 3.5% down.
Myth #3: A 30-year fixed mortgage is always the best option. That could be true if you keep the home for that long but if you only intend to keep the home for 5-7 years, there may be other options that are more appropriate. Remember, the longer the fixed rate, the higher your interest rate will be so you could be paying a higher rate for nothing.
Myth #4: The seller’s asking price is non-negotiable. Much like buying a car, the offer you make on a house does not need to be the full asking price. If you have good credit, pre-approval, and a good down payment ready to go, sellers will likely be willing to negotiate with you rather than hold out for another buyer.
Myth #5: If you don’t have kids, local schools don’t matter. The neighborhood you choose matters, both now and later when you might consider selling. Even if you don’t have children, good schools are a sign of a good neighborhood, which means when the time comes to sell you will likely sell quicker and for more money than a comparable home in a less desirable neighborhood.
Myth #6: You don’t need an agent. If you think you don’t need an agent because you have the Internet, think again! When you align yourself with a real estate agent, you get everything from help finding homes, inside information on properties and neighborhoods, and a skilled negotiator on your side that can help you navigate through any bumps on the road to becoming a homeowner.
One of our biggest obstacles as realtors is myth #6. If you intend to know what is going on in thelocal housing market, and have an inside ally to help you purchase a house, it is imperative ...to rely on a realtor to navigate one of the--if not THE--largest purchases you intend to make. I would love the opportunity to be your trusted advisor in the home buying process.
If you have any questions or need additional information on buying or selling, send me an email.