There are a lot of myths out there about home buying, and unfortunately, these myths can often deter people from taking the plunge into homeownership or lead them down the wrong path. Today, we're busting four of the most common home-buying myths:
Myth 1: You need a 20% down payment to buy a home.
This is one of the most pervasive myths about home buying. And it's simply not true! While a 20% down payment will help you avoid paying private mortgage insurance (PMI), there are plenty of low, or no-down-payment mortgage options available. For example, FHA loans require as little as 3.5% down, and VA loans are available to eligible veterans with 0% down. So don't let the down payment myth deter you from buying a home.
Myth 2: Sellers will easily go down if the house has sat on the market.
Not necessarily. Exceptionally high days on the market could mean almost anything. Sellers are often emotionally attached to their homes and may be unwilling to budge on price - even if the house has been on the market for months. However, if you do your homework and make a strong offer, you may be surprised at how negotiable sellers can be.
Myth 3: Foreclosed homes are a real bargain, and the banks need to unload them.
This may have been true during the housing market crash, but it's certainly not the case now. Banks, like entrenched sellers, don't always make decisions that seem rational based on obvious information. You can have a hard time divining why a bank chooses to reject an offer for a foreclosed or distressed property, and their decision may be based on financials that seem counterintuitive. Additionally, many foreclosed homes require significant repairs - and you may spend more money than you bargained for. So while foreclosure homes can be a great deal, be sure to do your due diligence before making an offer.
Myth 4: You need perfect credit to buy a home.
This isn't true either! While having good credit will certainly help you get a lower interest rate, there are plenty of mortgage options available for people with less-than-perfect credit. So if your credit isn't perfect, don't despair - you can still become a homeowner.
We hope this article has helped to bust some of the most common myths about home buying. My job as an agent is to represent your interests and do my best to protect you along the way. If you're pursuing a home purchase in the near future, please get in touch. There are many other ways I can lower your stress and help you find a great home.