When you think of buying your first home, you will receive advice from your family and friends which can make your more anxious and even makes your afraid to begin the home buying process.
Don’t let these negative myths keep you from the personal and financial rewards of homeownership. With knowledge and support of professionals, you’ll be able to make the decision and right choices about your financial future.
#1 You don’t need lender pre-approval
With a mortgage preapproval – you know your budget (factor in associated cost as well) and it is not only important for you but equally important for the seller as well.
#2 Do you have excellent credit?
There can be mortgage products and lenders for individuals with less than perfect credit to be a home owner.
If you have any credit challenge, talk to a Licensed Mortgage Professional to create a roadmap to build your credit which makes you qualify for the mortgage.
#3 Renting is cheaper than expensive
At the outright, yes this statement appears to be true for monthly payment but every monthly mortgage payment will help you build equity in your home – creating long term wealth for you.
#4 Mortgage loans are very complex and is a mind-numbing process
Your Licensed Mortgage Professional will walk you thru the complete home buying and mortgage financing process which helps to speed up the process.
#5 You need at least 20% for down payment
There are mortgage products which allow you to buy your first home with as low as 5% down payment. In fact majority of the first time home buyers make 5% as down payment. You will most likely need to pay mortgage insurance as part of your monthly payment.
#6 You need to pay for the realtor services to buy house
Home Buyer’s don’t pay for any realtor service but the seller and the realtor will guide you throughout your home buying process.
# 7 You need to pay off your student loan and other debt before you apply for mortgage
When you apply for a mortgage, the bank / lender will takes a close look at your debt to understand if you will be able to afford your monthly mortgage payments along with your other existing payments
#8 What if you are not able to make monthly mortgage payments?
If you are paying your rent responsibly on monthly basis – there is no reason that you will not be able to make your monthly mortgage payments specially when it is within your budget.
#9 You only need to save and budget for the down payment
You need to factor in other associated costs like closing cost which is usually 2-3% of the property value.
#10 It’s not the right time to buy
Unfortunately, nobody can time the real estate market so there is never a good or bad time but if you keep on waiting (renting) – you will lose a chance to build equity.
# 11 You don’t need home inspection
It is always recommended by experts that you should know what lies behind the house walls or beneath the foundation of your property which makes home inspection essential.
You should not fall for these myths or misconceptions and call your Licensed Mortgage Professional today to schedule a FREE (no-obligation) consultation
WE ARE HERE TO HELP
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