If you’ve been thinking about buying your first home, chances are you’re getting tons of advice from everyone you’ve mentioned it to. It can be pretty overwhelming, and that’s why I want to share 3 home buying myths you need to know if you’re considering homeownership. These will help debunk some of the things you may be hearing from people who probably have great intentions, but probably aren’t professionals.
MYTH #1: You Have to Put 20% Down to Purchase a Home
This could be the biggest home buying myth of all time! Putting a minimum of 20% down on a house does have some financial benefits .. BUT it isn’t required.
There are several options when it comes to financing your home so you’ll want to meet with a local lender to discuss these options before jumping head first into the process.
There are loans that require as little as 3% down as well as resources for buyers struggling with down payment money and first time home buyer programs.
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 can refer you to some great ones.)
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. That means they don’t take advantage of hiring a buyer’s agent to help them with their home purchase. That 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.
This is not a great combination- especially in this market. It can prevent you from getting an accepted offer on the house you really love because you haven’t been educated on the market or how quickly you need to make a move. Right now, that’s QUICK!
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 home, or any home, for that matter, that does not sound like a great situation.
MYTH #3:Prices probably won’t keep rising forever. But a market crash isn’t likely, based on who’s buying homes now: people with low debt-to-income ratios who put a lot of money down after losing out on a few homes to other buyers. “They will not be the first to abandon their homes if there is a downturn in the economy,” said Kenneth ErI of Climb Real Estate. “These homes are owner-occupied and not highly leveraged like in the run-up to the last crash.”
There are certainly a few more myths, but I’m here to help you navigate them. If you think you’re ready to purchaase, give me a call, or email me here. I’d love to help!