Buying a home is – a big deal. Doing research and finding the best location for you, and your family is second to none. The Sales team at Paul Wharton Style reached out to some of our friends who recently moved into their new home or are looking to purchase within the next 6 months. They told us some of the most common myths you should know about:
Myth #1: Your down payment is 20% of the cost
This myth — based on outdated information — simplifies the variability of loan types home buyers will need to get a down payment. It also overestimates the upfront cost.
Myth #2: Your credit must be perfect to buy a home
It’s true that your credit report is an important part of the mortgage process that will show your lender you’re a reliable borrower, but contrary to common belief, lenders don’t require your score to be more than 700.
Myth #3: Now, is a bad time to buy
There are too many variables for this to be a blanket rule, but generally competition is highest in the spring and lowest in the fall.
Myth #4: You should buy a home for the maximum you qualify for
It’s a natural impulse to want as much as you can get, but some lenders will allow you to commit up to half of your gross income to mortgage payments. That’s probably not the best decision considering all of your other financial commitments.
Myth #5: It’s cheaper to buy a fixer-upper
Buying a fixer-upper can make financial sense if the deal is right or you’re going to be doing the work yourself, but more often than not, the cost of renovation will outweigh the savings.
Myth #6: You don’t need a real estate agent
Online listings don’t cover everything an agent will help you with. A good real estate agent can help you stay in your budget, find options that fit your needs that aren’t online, assist you in making the right offer and much more.
Myth #7: Don’t settle for less than your dream home
Compromise is an important part of buying a home. You might not be able to afford every bell and whistle you imagined growing up, but you can prioritize what is most important and find something wonderful that fits all of your needs and many of your wants. Remember, your first home is not your final home.