Homebuyers: Don't Let Real Estate Myths Hold You Back!
This is an excellent post with great information. Thanks for sharing it.
Have a super fantastic week!
Joe Jackson, Realtor-KWCP
4 Myths that might hold you back from buying the right home for you and your family!
Read Carefully 1st Time Homebuyers... You don't want to miss great opportunities!
1. You MUST have 20% of the total purchase price of a home available to put down in order to get a loan. ABSOLUTELY FALSE!
Do yourself a favor, if you need a loan to purchase a home the first thing that you should do is get Pre-Qualified or Pre-Approved. Don't have any good lenders who you can trust? ASK YOUR REALTOR!
Your Texas Realtor should be able to provide a list of at least 3 lenders who you can contact. Contact them all... they each may provide different mortgage products with different rates and options such as a higher or lower down payment. Any Realtor who is active and doing business will know plenty of lenders AND should be able to provide resources that you might need for the purchase and/or sale of a home. Don't be shy, need a painter, mover, inspector or handyman, we can give you contacts!
2. You need to have perfect credit for a loan to purchase a home. SO NOT TRUE!
According to the U.S. Census, about 65% of homeowners have a mortgage. If you needed "spotless" credit to purchase a home there would be very few homeowners!
A good credit score can go a long way... you might get a lower interest rate, have a greater likelihood of being approved for a loan or perhaps not have to put as much money down, etc. etc.
But if you'd ask me how many people who I know have "spotless" credit, I wouldn't be able think of many.
Late payments, missing payments and using too much of your available credit may be reasons why your credit isn't where you'd like it to be HOWEVER this doesn't mean that you won't qualify for a loan to purchase a home.
3. Don't buy the biggest, most expensive house in the neighborhood. THIS REALLY ALL DEPENDS...
Bottom-line, if you find a home that suits you and your family's needs, don't give up an opportunity to purchase it if it works for you! You need to ask yourself this... are you buying a home for you and your family to live in and enjoy or are you buying a home to sell?
I realize that a home is an investment and will probably be your most valuable financial asset. It is important to plan well so you aren't stuck with something that you can't sell in the future. However, chances are that if a home meets your needs it will also meet another family's needs as well! You can always hire a Texas Realtor to expedite the sale of your home in the future!
If I were the Realtor involved, my course of action would be to do a CMA of the neighborhood and present an offer for the purchase of the home based on current closed sales as comparisons. If the home was priced out of range, I would negotiate using the comps as leverage. If the seller refused to lower the price, decide if it's worth it for you, the buyer, to walk away from the purchase and continue your search.
4. You need to time the market. UGH... DID I MAKE IT ON TIME?!
There are some things in life that you can predict and schedule with considerable accuracy. If you are an investor, you might be able to take advantage of a buyer's market for an additional real estate investment. However, you can't always time life events that might make it an optimal or necessary time to buy a home to live in. The housing market is influenced by many factors including the economy, interest rates, the stock market, local markets and politics. Like all of these forces, the Real Estate market is cyclic... It will eventually bounce back! Buy when the time is right for you and your family!
Looking to buy or sell a home or investment property in Austin, Lakeway, Bee Cave or the Lake Travis area of Texas?! I'm the person for you to contact!
Cary Nemeroff, Austin Lakeway ASL Realtor
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