Buying a home is a real investment. However, making that investment can be pretty scary, especially if you don’t know where to start. And with the lack of information, most people turn to the internet to get more information. But just like there’s a ton of helpful information on the internet, there’s also a ton of myths.
Real estate myths are pretty common, but this article will bust the myths around buying a home. Let’s dive in. You can also click here for homes and condos for sale in Fort Lauderdale.
- It’s Cheaper to Rent
One common myth that has been around buying a home is that it’s cheaper to rent rather than buying a home. Well, the truth is that it depends on where you live. For instance, cities on the West Coast have high prices on homes that renting is much cheaper. On the other hand, buying a home in smaller towns is much more affordable, as insurance, mortgage, and taxes are much less.
- Buy the worst house in the neighborhood
Another common myth most people have when purchasing a home is buying one in a bad neighborhood. This is one myth buyers looking for a bargain on their home use to finally accomplish their dream of owning a home. The truth is that buying the worst house in the neighborhood will always cost you more money and lots of time renovating. Also, renovations often involve unexpected costs and surprises.
So, if you are looking for a bargain, consider researching neighborhood real estate taxes. Neighborhoods with high real estate taxes may be quite expensive. They may also have stricter rules and homeowner associations regarding everything from exterior paint colors to home additions.
- You don’t need a real estate agent
Most people often assume that purchasing a home is as easy as a, b, and c. And because of this assumption, some people have always opted to buy their dream home solo, which is a huge mistake. You do require a real estate agent to buy a home. They are experts, and they have the skills you need to negotiate or search for your dream home. They also know a lot more about the purchase process than you do.
- Buy a home in the spring
Another common myth potential homeowners have when purchasing a home is that it should be done in the spring. While the statement may be partially true, as there are many available inventories during the spring, there are also many buyers. And with more buyers, competition increases, which drives up prices. So, for you to avoid paying too much for a home, try purchasing one in the fall or after spring when prices have come down considerably.
- You must have 20% down payment
One of the hurdles first-time homeowners have to face when buying a home for the first time is trying to save up to make the down payment. You’ve probably heard of the 20% expected down payment you will need to make on a home. Contrary to what people believe, you don’t need to pay 20% down payment to purchase your home. You can put 5% or even 12%, but it’s essential to keep in that the more the down payment you put down, the lower the monthly mortgage payments you pay.
- Lousy credit will keep you from buying a home
One common fear for almost everyone is bad credit. While bad credit does come with several limitations, it doesn’t have to keep you from buying a home. Just because you have a bad credit score; doesn’t mean that you can’t be a homeowner. For you to qualify for a mortgage, lenders look at different factors like property type, income, debt levels, assets, and credit score.
- Look for a house first
You never have to look at a house first when purchasing a home. Viewing the home beforehand might not be helpful, especially if you aren’t sure about the price range. While browsing is fun, try to avoid doing it before you are sure about your credit.
- You don’t require a home inspection
Most homeowners often fall for this tall tale, especially if the housing market is hot. But, that isn’t true; every home requires a home inspection, as it will help save you a lot of time and money.
- Schools don’t matter, especially if you have no kids
This statement isn’t true. The neighborhood you choose does matter, even if you have no children. Good schools are a clear indication of an excellent neighborhood/
- The asking price is always set in stone
This isn’t true. Your real estate agent can negotiate with the seller to help you get a lower asking price.
With the above myths debunked, purchasing a home is now easier.
