Buying a new home is the biggest investment you will make.  There are many misconceptions when it comes to purchasing a home.  I have listed 10 things you NEED to know when buying a home.  When working with a mortgage professional you should have more than one loan option to choose from.  It is always best to talk to a mortgage professional before looking for a home.  This will allow you to get pre-approved so that you know what payments are comfortable for you, and can look at home in that price range.

10 things you NEED to know when Buying a Home

1. You do not need perfect credit - There are loans for almost every type of credit.
2. You do not need 20% down to purchase a home - There are many loan programs that do not require a down payment at all.
3. Using a Realtor to find the home of your dreams will not cost you money - When you use the help of a Realtor to find a home, the Realtor is paid by the seller of the property.
4. A home inspection is not required - However, an inspection by a certified inspector is HIGHLY recommended.  The inspector will do a complete inspection of the home and could save you thousands of dollars in the long run.
5. You can ask the seller to help pay closing costs - The seller of the home you are purchasing may be willing to contribute to your closing costs to decrease the amount of money you will need at closing.
6. Mortgage Insurance (PMI) is not always required when you put down less than 20%- There are different loan programs that do not require you to have Mortgage Insurance (PMI), check with your mortgage lender.
7. An escrow account is not always required if your down payment is less than 20% - You may be able to pay your own taxes and insurance for your property if you do two loans
8. You can use child support, social security income, and disability income to help you qualify - If you are able to show at least 3 years of continuance of any of these types of income, they can be used
9. FHA is not only for First Time Home Buyers - You can purchase a home with an FHA loan even if you have purchase a home before.
10. The house that has been on the market for a while will not go for ten of thousands of dollars less - Even though this is a buyers market, typically the asking price for the home is based on the current sales.  A seller will not always be receptive to a much lower offer just because the house has been on the market for several months.

Kim Murphy ~1st Advantage Mortgage~ Helping you purchase the home of your dreams in DuPage, Kane, Lake and Cook Counties for over 10 years.

picture courtesy of flickr