Wednesday, April 2, 2014

Top Home Buying Myths



Top Home Buying Myths

There are many misconceptions about the home-buying process.  To help set the record straight, here are some common myths; Many myths are created by "Haters", those that just hate your drive, your motivation and just your successful ways. THEN, it's those myths that have been around for years and are just plain false, not true, YET, often cause well intentioned, motivated and would-be HOMEOWNERS  enough caution to not move forward!

Myth #1:  You don’t need a Realtor.

Before you bravely take on one of the biggest purchases or sales of your life, remember this: it’s not as easy as it looks.  Realtors know all the ins and outs of the local area as well as the market in which you’re looking to buy or sell.  Picking up the phone and calling a Realtor may be one of the best decisions you’ll make.

Myth #2:  The bigger the down payment, the better off you’ll be.

Buyers’ immediate reflex is to put as much cash down as they can when buying a new home because they’ll borrow less, lower the monthly mortgage payments, and won’t need to buy mortgage insurance.  However, putting 20% down is not a requirement and it’s not for everyone.
Thanks to Federal Housing Administration Loans (FHA Loans), you can put as little as 3.5% down.  With this method, you’ll potentially have a lower interest rate, giving you more flexibility.  Your money is not all tied up in your house like in a traditional down payment that can leave you with little or no extra cash to spend on home care, improvements, or any other unforeseen circumstances.

Myth #3:  Appraisers set the value of a home.

The role of the appraiser is to produce a credible opinion of value that reflects the current market.  Appraisers are not responsible for setting the value of the home and they also do not confirm a home’s sale price.

Myth #4:  You need perfect credit.

Most people assume that you must have absolutely golden credit in order to get a loan, but that just simply isn’t the case.  If buyers have less than perfect credit, lenders are often willing to work with them to get the best possible loan.
Credit is not the only thing that lenders look at when deciding to approve a loan, but your score will have an effect on the interest rate on your mortgage.  Make sure you review your credit report and if any errors are found, they should be reported to the credit reporting bureaus before applying for a mortgage.

More then ever, in today’s market it is extremely important to have an informed, Savvy REALTOR who knows and understand this market.  
   - Contact me - (click below)                                                             
Theodore “Ted” Corbett when BUYING a Home or SELLING your Home!