The homebuying process is complicated — especially for first-time buyers. To make matters worse, there are a ton of misconceptions out there that can throw a homebuyer off even more.
A couple of examples?
You need a 20% down payment: myth.
You should pay off your student loans first: myth.
Are you thinking of buying a home? Then don’t believe everything you hear. Steer clear of these four homebuying falsehoods:
Myth: The lowest rate is best.
A low mortgage interest rate can make homebuying more affordable. But other factors matter, too: the length of your loan, whether it’s a fixed or adjustable rate, and the loan product you’re choosing.
Myth: You can save money by not using an agent.
There’s a chance that this is true, but it’s unlikely to work out that way. Agents have loads of expertise, and they can also give you a leg up in negotiations. Not finding a great agent can often hurt you financially — especially in a competitive market.
Myth: The mortgage is your only monthly payment.
Buying a house is more than the mortgage payment. You’ll be paying for maintenance, utilities, homeowners insurance and maybe even HOA dues. It’s essential to have a complete picture of the costs before diving in.
Myth: Your finances aren’t good enough.
Do you think your credit score is too low or your debt is too high? Are you worried that your income or savings aren’t enough? These requirements vary widely from one loan product to the next. We’ll work together to match you with the best loan for your needs and financial standing.
Need help with financing on your homebuying journey? Reach out today.