Buying a home is too expensive.
Now is not a good time to buy a house.
You need a lot of money to put on a down payment to buy a house.
These are not voices in your head discouraging you from buying a home These are words you hear from friends and colleagues at work when you discuss your desire to buy a home. And what they are is not the truth, rather they are myths that only serve to discourage you.
Buying a home is a complicated process, especially if you have never owned a home before. Today’s housing market is much different than it was 20 or 30 years ago. In fact, the housing market is much different than it was just a few years ago. So the rules that applied in 2008 don’t apply today.
Your friends and colleagues might mean well, but the information they are giving could be completely wrong. If you are in the market for a home, make sure you steer clear of the inaccurate information and misconceptions that are out there. William Raveis Real Estate, your real estate agency in Bath, offers these home buying myths that exist.
20% Down is a Must
The more money you put down for your home, the better off you will be in the long run. Of course, not everybody has that kind of money just sitting around. And while 20% down is an ideal number, it is still very possible to secure a great loan with less.
In fact, there are scenarios in which you can buy a house with only 5% down payment. Your realtor can help if you have questions.
30-Year Fixed Mortgages Work Best for Everybody
No, this is not necessarily true. If you buy a home and the plan is to live in it for a very long time, then a 30-year fixed loan is probably the way to go. It makes sense if you will be in the house for, say, 30 years or more.
If you buy a house and plan on selling it is five or 10 years, then you might want to opt for a different type of loan. For example, a 15-year loan makes more sense if you are planning on only staying in the house for a few years. So before deciding on the type of loan you want, make sure you explore all of your loan options to see which makes the best sense for your situation.
Always Buy in the Spring
Many people believe that spring is the best time of year to buy a house. The truth of the matter is that so many people believe this and wait for spring to buy a house and in doing so, make the competition high and drive the prices up.
According to research on the matter, inventory for houses peaks in October, which means less competition and a much better chance you will get a better deal on your home.
You Need Perfect Credit to Qualify for a Home Loan
This is simply not true. While you do need decent credit to qualify for a home loan, it does not have to be perfect, or even really good. Now, if you have lousy credit, it will be difficult to secure a loan, so you should work on that.
Renting is Cheaper
This does hold some truth in the short term. That is, right here, right now, it might be cheaper to rent than to own, but that changes the longer you remain in the home you buy.
You see, the longer you rent, the more likely you will see a steady increase in your rent payment. But no matter how long you live in the home you bought, your payments remain about the same.
If you choose a 30-year fixed-rate loan, your payment will be the same in 2040 as they are in 2019.
You Don’t Need a Real Estate Agent
The reality is that you don’t need a real estate agent to purchase a house, but you sure are better off if you have one. Home buying is something you should not go at solo. Real estate agents are pros who bring their expertise to the table. Trust us, they know a lot more than you.
Give William Raveis Real Estate a call today.