Buying a new home is exciting but it is not that easy. It is usually combined with anxiety and stress due to a lot of things that you need to consider. In making a decision to buy a home there are also some information or advice you can get coming from your friends, family members, colleagues or even on the internet. Some of this information might lead to misconceptions and could create problems for a home buyer all throughout the home buying process. Learn the truth in order to avoid misconception in buying a new home.
I need 20% down payment
Many home buyers believed that they need to have a large amount of money for down payment. Not at all! There a several ways to finance a property with little to no down payment. One of the most popular ways to finance a home is by using FHA, Federal Housing Administration this one is similar to Pag-ibig in the Philippines. It allows the buyer to put as little as 3.5% down payments towards a home. And there’s the Department of Veterans Affair (VA). This is only applicable for people who served in the army. For this type of financing, it does not require a down payment. The main point of this is you have alternatives.
I need to have a perfect credit to buy a new home
This is not true! Most people mistakenly believed that in order to qualify for a mortgage is to have a high credit score. Well, here is the good news. Nowadays there are several mortgage products available for home buyers that would allow credit scores for as low as 620’s. In addition to that, credit guidelines for FHA, Federal Housing Administrative Mortgage are much more merciful compare to other conventional loans. You would only need 580 in order to qualify for a loan. Isn’t that amazing? So you don’t have to worry that much if in case your credit score is not high.
Getting a Real Estate Agent
Typically home buyers assumed that they don’t need to hire a professional agent for a home purchase. However, hiring a professional agent can make your home buying process much better. When it comes to negotiation, they are reliable and very effective to make a deal or an offer. Not only that, if you are a buyer of a property, buyer’s agent will also help you to get pre- approval in applying for a loan. Since, an experienced Real Estate agent knows how to communicate with a bank.
Buying a Home is a Quick Process
First time home buyers misconception is they often think that buying a home is an easy process. In reality, purchasing a property comes with many struggles to overcome. This will take up to 60 days from contract date to closing of the transaction. This will depend on several factors.
I hope this article has helped you in avoiding some misconception in buying a home. It is important that you’re aware of these in order to be successful with your home purchase!