If you’ve been thinking about buying your first home, chances are you’re getting tons of advice from everyone you talk to. It can be pretty overwhelming. I’d love to share with you 3 home buying myths you need to know if you’re considering homeownership. These will hopefully help debunk some of the things you may be hearing from people who want to give their advice with the best of intentions, but who probably aren’t professionals.
MYTH #1: You Have to Put 20% Down to Purchase a Home
This is probably the biggest home buying myth of all time! Putting a minimum of 20% down on a house does have some financial benefits .. BUT, contrary to popular belief, it isn’t required.
There are a number of options when it comes to financing your home so you’ll want to meet with a local lender to discuss them before jumping head first into the process.
Did you know there are loans that require as little as 3% down as well as resources for buyers struggling with down payment money. First time home buyer? There are some great programs out there just for you.
MYTH #1 Tip: Do not get pre-approved from an online lender. Find someone local who you can actually sit down with, understand your options and make the best decision for your financial future. I have some great lenders locally who I work with regularly. Trust me- I’ve been doing this a minute, and the ability to have someone locally is invaluable!
MYTH #2: It Doesn’t Matter if I Don’t Have a Real Estate Agent
Some buyers prefer not to commit to working with one specific agent and therefore don’t take advantage of hiring a buyer’s agent.
This means they’re on their own for scheduling showings, being alerted of new listings and when it comes time to negotiations, they won’t have anyone working in their best interest.
Not having an agent on your home buying team can even prevent you from getting an accepted offer on the house you really love. You may not be educated on the market or how quickly you need to make a move. It could also result in you losing money or overspending because you don’t have anyone negotiating on your behalf. I don’t know about you, but if I’m buying my first house, or any house for that matter, that does not sound like a situation I want to be in.
Finally, as a buyer, you don’t pay the buyer’s agent a thing. While some folks think that means they’ll save money, they usually don’t- the commission is set by the homeowner and the listing agent (so no agent often just means they get it all) in addition to all of the value you get from a buyer’s agent listed above.
MYTH #3: Wait Until “Spring” to Start Looking For Homes
Real Estate Agents hear this ALL. THE. TIME. I want to share why you shouldn’t wait for a specific time of year to start your home search, especially Spring.
There is less competition when you’re not in the prime months for buying and selling real estate. Buying in the “off season” could save you money because there are less buyers out which means less potential competition when writing an offer. It’s best to start your home search when you are ready rather than waiting for a certain time of year. There are always new listings coming on the market and you could be missing your perfect house if you want to start your search until a specific time of year.
If you’re considering homeownership, you’re already ahead of the game by knowing about these 3 myths. Your next step should be to sit down with me. I’d love to go over the entire process with you and set you up for success.
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