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.
Thanks for getting back to basics offering some of the worst things people assume about buying and or using Realtors...It is posts like this that helps educate the not so savvy buyer.
I still am amazed when I meet people who think they are better off trying to find there home themselves.
Buying a home can be complicated and frightening. You acquire a large debt and assume many new responsibilities. And in the back of your mind is that nagging question, “Did I get ripped off?”
I designed a list of few tips to help one make the best homebuying decision possible.