7 Home Buying Myths You Should Stop Believing
If you’re just starting your search for a home, you may be feeling intimidated and a bit overwhelmed. Everyone seems to have an opinion about how you should go about purchasing a home, and there is so much information out there about what you should and shouldn’t do that it’s easy to feel bombarded.
Despite the fact that you may be experiencing information overload as you start researching the home buying process, it’s important to do your due diligence so you can be sure you’re going about the process in the way that’s right for you.
As you’re studying up, it’s also important to be able to determine fact from fiction.
Myths About Home Buying
You can’t believe everything you hear about home buying. In fact, part of what makes shopping for a home seem so overwhelming is sifting through all the information you’ve collected to determine what’s true and what’s not.
Whether it’s advice from a friend or insight from a relative who bought a home years ago, you can’t believe everything you hear about home buying.
As home buying experts, we’re here to set the record straight. Here are 7 home buying myths to keep your eyes and ears out for as you’re shopping for a home.
1. You Should Find a Home First, Then Shop Your Financing Options
While some people may come across a home they love and then work to figure out how they could finance the purchase, the truth is that shopping your financing options first is actually the better way to go.
By learning about your mortgage options first, you’ll have a better idea of what you can reasonably spend on a home purchase, and you’ll know which homes fit your budget and which do not. This can help prevent you from falling in love with a home that’s outside your price range, which can be a heartbreaking experience that leaves a bad taste in your mouth.
2. You Must Have 20% Saved Up For a Down Payment
Putting 20% down used to be the standard, but today many mortgage programs no longer require such a sizable down payment. In fact, if you don’t have 20% down to put towards a house, don’t let that deter you from starting the first steps towards getting prequalified for a mortgage. Chances are there is a mortgage option that will work for you. Some require as little as 5% down, so explore your options. You may have already saved enough!
Learn more about the truth when it comes to down payments on home purchases here.
3. You Don’t Need to Work with a Realtor
Some people will probably encourage you to go it alone when it comes to shopping for and ultimately purchasing a home. But the truth is that the process of home shopping is much easier if you work with a licensed real estate agent – especially if you’re buying a home for the first time.
Agents have access to information that you won’t have access to as an individual, plus they are able to speak with other realtors to help you get faster access to the houses you’d like to see. They also have experience negotiating and know what to look for (and what to avoid) when you’re shopping for a home. In short, they are good allies to have on your team when you’re navigating the home purchase process.
Find out how to choose the right real estate agent!
4. A Fixed Mortgage Is Always The Best Option
While fixed rate mortgages do offer a lot of benefits, the mortgage option that will suit you best will depend on a number of factors. That being said, there is no one-size-fits-all answer to the question of ‘what’s the best type of mortgage?’
In order to determine which mortgage option is truly best for your financial situation and your home buying scenario, it’s best to talk with a mortgage broker to explore your options. There are so many home loan choices out there, it’s in your best interest to review them all and find what works best with your lifestyle and budget.
5. You Can’t Buy a House If You Have Less-Than-Ideal Credit
Your credit score plays a big role in your ability to make a home purchase, and it does impact the types of mortgages you’ll qualify for. However, the fact that you don’t have perfect credit doesn’t necessarily preclude you from securing a mortgage to purchase a home.
There are mortgage options for those with less than ideal credit, so if you’re not sure if you’ll qualify it’s still worth talking to a lender to see what might be possible.
Learn more about your credit score and how it affects your ability to qualify for a mortgage here.
6. You’ll Regret Your Home Purchase If You Don’t Get Every Feature You Want
Some will tell you that if you purchase a home that doesn’t include every feature and finish that you hoped for, you’ll regret purchasing your home. Unless you have an unlimited budget, if you’re planning to hold out to find a house in the location you like that has every single aspect that you’re looking for and fits your budget perfectly, you’re probably going to be waiting a long time to make your home purchase. In fact, you may never purchase a home at all.
For many home buyers, it’s a myth that the perfect home exists. It’s important to realize that there will be things you have to sacrifice and compromises you’ll have to make when buying a home if you’re going to stick to your budget, and that’s okay. As long as you’ve prioritized what’s important and the home has the majority of features you were hoping for, chances are you’ll be happy.
7. Banks Are The Best Place To Get a Home Loan
While banks might offer the convenience of being a one-stop-shop for car loans, home loans, bank accounts, and more, mortgage brokers are the way to go if you want to truly shop your mortgage options.
Brokers have access to loan programs available from various different lenders, some of which aren’t available to the general public. In addition, they can offer very competitive rates and help you find the home loan that truly suits your budget and situation.
Curious about the difference between brokers and banks? Compare them here.
Don’t Believe Everything You Hear About Home Buying
There are a lot of home buying myths out there. These are just a handful that we’ve heard over and over as our clients have been navigating the home buying process.
In the market for a new home? Keep an ear out and make sure these myths aren’t skewing your perception!
Have questions about the mortgage process? Curious if Maple Tree Funding could help you secure home financing? Give us a call today at 518-782-1202 or contact us online to get the conversation started.
Ready to take the first step towards securing a mortgage? Fill out this form to initiate the mortgage application process today!
Looking for more helpful insight about purchasing your first home? Check out the first time homebuyers section of our site for resources to help you prepare for the home buying process and learn what to expect!