Buying a Home can serve as a great investment. Others would consider it an achievement while others a pain in the neck. It involves a lot of stress, anxiety and insecurity — mostly to your pocket. However buying a property doesn’t need to be stressful. In fact there are a lot of misconception that buyers mistook when buying a home, which leads to a lot of problems along the way. So before you buy that nice home at the corner arm yourself this information to guide you to a stress-free purchase.
- You Only Need to Have a Down Payment
One of the most common misconception when buying a home is that you only need a huge down payment. You don’t need to have huge lump sum of down payment to buy a home. However, you still have to set aside some money for extra fees needed to complete the transaction, such as:
- Mortgage insurance
- Real estate taxes
- Bank appraisal
- Attorney fees
- Underwriting fees
- Inspection fees
Remember buying a property involves a lot of money and extra fees so save up and make sure that you always have that extra as an emergency measure.
- You Need to Have a Perfect Credit
Wrong! Yes credit score is important when buying a home, this will determine if you are capable of buying and paying for this home. However, having a lower credit score doesn’t mean that you can no longer afford to buy a property, it only means that it you’ll get a higher interest rate in your mortgage. Lenders would need to take a high risk when they lend you that money and in order to cover up for those expenses, they would need to increase the interest rate.
- I Don’t Need to Have a Real Estate Agent
Yes, I understand that you want to purchase this home on your own, that you’re independent and that you don’t any need help. However those misconception can lead to a lot of pitfalls. Unless you are a genius and knows the Ins and Outs of Real Estate then by all means. But I would highly recommend to hire a real estate agent. They are not only trained and specializes in a real property transaction and investment but they are there to help you and guide you to a stress-free process. Real Estate is a very competitive market so it require the best and the right people to do it. But remember don’t settle for the first agent, inquire and evaluate who would fit best for this important job, someone who can give you an advantage and stress free opportunity.
- Look for a Home, Then Talk to the Lender
Not the best idea. You need to first have someone to evaluate your financing options and get pre-approved. You need to get that Pre-approval in order to buy a home that is suitable for you and your wallet. You will not understand all the cost that will be associated when buying a home, You will know what property that is within your reach and budget and lastly you’ll know if the property will give you the best interest rate and mortgage package.
It is a lot to take in right? Well, nobody said that buying a home would be easy. It requires a lot from you and several process. But after all of those, I assure you that you will get the satisfaction of having your first home that could potentially be a great investment. Relying on home buying misconceptions can lead you to a lot of issues and an unsuccessful experience. So for your own good, Research, Inquire, Find out the truth and Get the best help available to have the best experience you’ll have when buying a home.