First Time Buyer Myths
As a first time buyers you may have a varying degree of nervousness about buying a home. As a Realtor© my job is to validate, or invalidate, your concerns and assist you on your way down the path to greater net-worth.
Recent surveys have shown the following to be some of the more common first time buyer myths:
- Mortgage lending requirements are still to tight.
- You should wait until after choosing a home before talking to a lender.
- You must have a 20 percent down payment.
- You do not need a home inspection.
- You should focus your home search solely on your wants.
- It's not necessary to check your credit before embarking on the mortgage process.
- "Preapproved" and "prequalified" are interchangeable terms.
(Sourced from Housingwire)
When you are new to the real estate market it is understandable why you might be skittish about such a large purchase and that is exactly why it is paramount too rely and trust in a local expert. The mortgage market and the real estate market are ever changing climates that can only truly be understood by professionals who engage in it everyday.
For example, beliving that lending standars are still "to tight" would run contrary to actions by the FHFA, having just recently loosened down payment requirments from 3.5% to 3% on FHA mortgages. This could potentialy be a dramatic diffrence for many first time buyers.
Believing that home inspections are uneccesary could potential leave you having just bought a very expensive "lemon". The term "buyer beware" applies here. It is never a good idea to pass on your legal right to purchase a home with any and all available information. This again, could have a dramatic impact on a buyers buying experience and pocketbook.
In many areas renting is far more expensive than owning. Here in Lake County typical scenarios would suggest you can save hundreds of dollars a month owning as opposed to being a renter. That could be a car payment! Purchasing real estate is also one of the best ways to increase your net-worth and recieving additional credits on taxes.
For more information on the benefits of ownership, or to discuss concerns, feel free to contact the Steber Group and speak with a "Buyer's Broker". Consultations are complimentary and free of obligation.
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