It’s easy to be misled by myths, especially when they might seem pretty reasonable. I’m here to clear the air on what home buying myths you should look out for and why they are a myth to begin with.
Hopefully, this will give you a bit more knowledge on the subject before you decide you’re ready to buy.
1. Your down payment must be at least 20%.
That’s right, this is a myth! Your down payment does not need to be 20%, in fact, if you’re a first-time homebuyer, there a many assistance programs out there that are specifically made for you!
Your credit history, income, and debt ratio all play an important role in buying a home, so take a bit of pressure off yourself when it comes to down payments, and instead, work on trying to be a well-rounded candidate for a home loan.
This will better your chances of getting into a home with little down! The best person to talk to about this type of situation is a loan officer. I can connect you if you need one to talk to!
2. Interest rates are only going up.
Actually, they aren’t at the moment!
We saw record low-interest rates during the past few months, and it’s not too late to take advantage of it.
People try to time the market, and I would advise against this. When you try to time the market exactly right to see if you can get the perfect home for the perfect price, chances are you might be waiting for a while. The best time to buy real estate is now, as cliché as that may sound.
3. Real estate agents are too expensive and not worth it.
If you’re a buyer, most real estate agents essentially work for you for free! Buyer’s do not pay the commission, the seller does (in most cases).
This means that you can have a professional help you through what is possibly the biggest purchase of your life for free!
Agents do quite a bit of work for buyers that wouldn't be possible without one.
For example, I set up personalized email notifications for every home in the area my client is looking in. This means that when a new home comes up, they are immediately aware of its appearance! I love being able to do this for my buyer’s since it helps make sure that they don’t miss out on the house of their dreams.
On top of this, agents also help with the negotiations as well, so you might actually end up saving money by working with one.
4. You will find the perfect home.
No home will ever be able to check every box on your list (not unless you’re super, super lucky!) It’s important to keep this in mind as you look for a home.
Try not to be discouraged by this! It’s not as black and white and you might think…there are many ways for you to improve on any house in order to make it fit what you want a bit more at the end of the day.
Something that I love to say when my buyer is out looking for a house is to look for just that – a house. Once you get the house, then you can turn it into a home!
The difference between a house and home are in the details that make it individually yours, and all of that comes after you find a house that is nearly or somewhat perfect for you. Personalizing it after purchase not only saves you some money, but it is also sometimes the realistic choice.
Recognizing that you might not find the perfect home doesn’t mean your perfect home doesn’t exist, it just suggests that you might have to make adjustments to a great home to make it even better for you.
5. Renting is cheaper than buying.
I can’t tell you how many times I’ve had to explain why renting will ultimately be more expensive than home buying.
The idea of buying a home does sound daunting, but it doesn’t have to be (and it can make you money!)
Renting is only becoming more expensive, and you aren’t really gaining anything from it financially so to speak. When you buy a home, you are working towards paying off an investment in your future.
This is an important distinction because it helps people understand the importance of home buying. Renting only steals your money, buying a home multiplies it. It may be a larger sum of money upfront, but long term, buying a home will pay off more than renting ever could.
I hope this was able to bust some myths about home buying! It’s my goal to continue to educate you on the home buying and selling process, and this is just one of the topics that I felt I should address this week.
Thanks for reading, and let me know if there is anything I can do for you as usual!