Congratulations! You're ready to buy your first home. If you are like most newbies, you might be likely to ask family and friends for advice. A word to the wise ... be careful. Folks with even the best intentions can get the line between fact and fiction confused when it comes to real estate transactions. That is why it is best to save your questions for a professional.
Our team of REALTORS® has compiled this list of the most common home-buying myths to set the record straight when it comes to buying a house.
- Myth 1 - You Should Find a House First
While the thrill of buying your first home may come from the hunt, you risk having your heart broken if you fall in love with a home you cannot afford. Your first step should be obtaining pre-approval for financing. This will help you narrow down your search to those homes that are realistic for your budget. Mortgage pre-approval will also give you the ability to move quickly when you do find the right one.
- Myth 2 - You Are Required to Have a 20 Percent Down Payment
Mortgage lenders will typically require a 20 percent down payment if you are applying for a conventional loan. A conventional loan may actually save you money in the long run because you can avoid paying private mortgage insurance (PMI) as well as lower your monthly mortgage payments. Lenders will offer loans at 5 and 10 percent down, but paying a monthly PMI bill will be an additional expense. Also, if you qualify for a Federal Housing Administration (FHA), government-backed loan, your down payment may only be 3.5 percent.
- Myth 3 - My Credit Disqualifies Me from Purchasing a Home
Bad credit can halt your hopes of obtaining a conventional loan; however, other options exist for borrowers with less-than-stellar credit. Lenders take a number of items into consideration when reviewing loan applications. These factors can include your income, employment history, assets, and debts. Talk to various lenders before you assume that your credit will disqualify you from purchasing a home.
- Myth 4 - The Asking Price is the Sales Price
One of the keys to buying a home is knowing how to negotiate--the asking price is not necessarily the sales price. Most sellers price the home with some wiggle room, and working with a qualified real estate agent will help you negotiate the best possible price. Our real estate agents at Haring Realty are skilled negotiators who are ready to help you get a fair price for your home.
- Myth 5 - You Don't Need an Agent
While you can buy a home without a real estate agent, this isn't the wisest thing to do. Buying a home is filled with paperwork, negotiations and legally-binding contracts. Finding a real estate agent to help you through this process is going to be one of your biggest assets during the days ahead, so don't go it alone.
If you are starting the process of searching for Mansfield homes, make sure you have the right team at your side. Contact Haring Realty to obtain the help of a real estate agent to find a home that fits your needs and your budget.