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Today I have Amy Wolff of Direct Mortgage Loans with me. We’ll be talking about some common myths that you might hear when you’re trying to buy a home.
- Myth: You need 20% down to buy a home. You don’t have to put 20% down, and some loan programs don’t even require a down payment. Each loan program will have different requirements.
- Myth: You need an amazing credit score to get approved. You don’t need an 800 credit score to get a loan. As long as you’re in the 580-600 range, you should be eligible for a few different loans.
- Myth: Your income determines how much you can borrow. Someone who makes $100k per year but has a lot of expenses on car loans or other monthly fees may not be approved for as much as someone who makes $50k but doesn’t have all those outstanding debts.
- Myth: Pre-qualification and pre-approval are the same. This is completely false, and you will need a pre-approval if you want sellers to even entertain your offer. Pre-qualifications don’t really cut it anymore. A pre-approval is much deeper and more trustworthy.
- Myth: All agents are the same. Not all agents are created equal, and not all of them treat their business the same. Our team has some of the top agents in the market and we continue to excel every single day.
- Myth: The seller pays all the closing costs. This is different for every single transaction, and it all comes down to what happens in the negotiations.
- Myth: It's cheaper to rent than to buy. This is absolutely false. For most mortgages, you will pay less monthly than you would if you were still renting. It might be time to stop paying off someone else’s mortgage and start investing in your own future.
- Myth: The asking price is the selling price. You can ask a buyer to pay $200,000 for your home, but that doesn’t mean that someone will pay that amount for your home. This rarely happens, and often times you will get a little more or a little less than that. The selling price is almost always different from the original asking price.
These are some common misconceptions that buyers have about the real estate market. It’s important to understand the truth in order to set the correct expectations when you dive into a real estate sale.
Please don’t hesitate to contact me, interest rates are incredibly low and 2016 will be a fantastic year to buy a home!
