I'd like to talk to you today about some common misconceptions about home-buying and maybe answer questions you may have about the process.
Myths About Mortgages
Myth: I had some debt when I was young and ruined my credit. I'll never get a mortgage.
Reality: You don't know what your credit history shows until you look. And if you do have blemishes from the past - even a bankruptcy - many lenders will overlook problems if the past two years show good credit practice on your part.
Myth: I heard you need to put 25% down to buy a house. But my friend says that you can get a mortgage with no down payment at all.
Reality: Both scenarios are uncommon. Although there are a variety of financing programs available, most require you to put at least 3% to 10% down, but rarely would you need 25%.
Myths About Agents
Myth: If I have several agents looking for homes on my behalf, I'll find a house more quickly.
Reality: Like most relationships, this one thrives on communication, loyalty and trust. By working exclusively with one agent you will improve both the process and the results.
Myth: If I want an agent to represent me as a buyer, I'll have to pay them myself.
Reality: Buyer representation means that the sales associate you select works with your best interests in mind. In most cases, however, they receive a portion of the commission paid by the seller.
Myths About Buying
Myth: I should find a new home first before I sell the one I now own.
Reality: If you find a buyer for your home first, you'll have more negotiating power in both the sale of your current home and the purchase of a new one.
Myth: I just made an offer on a house I love, but so did several other people. I'm worried that someone else will outbid me and get it.
Reality: Different sellers are motivated by different things. In addition to price, a seller will look at the other terms of the offer - contingencies, closing date, required repairs. Many times a "clean" offer from a pre-approved buyer will be more attractive, even if the price is slightly lower.
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