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3 Home Buying Myths
3 Common Myths Preventing You From Buying Your First Home
So you’re finally getting the itch to buy your first home. This is a big step in adulting, so congrats.
It’s an incredible time but it can also feel scary and complicated. If you’re like most people you’re probably turning to loved ones for advice and answers. Buy be warned real estate is filled with myths that will make your journey to home-owner a lot more difficult than it needs to be. If you don’t consult with professionals, these myths can defeat you before you even get started.
The simple truth is that buying a house is easier than you think.
So here are three of those big myths - and their alternative truths you’ll be happy to discover.
Myth #1: Bad credit will ruin your chances
Have you seen your friends kill themselves to raise their credit scores so they can buy property? That doesn’t have to be your story. It turns out you can buy a house with a credit score under 600. All you have to do is find the right lender.
We get it. You graduate high school and entered society thinking credit cards would help you. In turn you found out the hard way that it wasn’t that easy, and made some mistakes along the way that are due to follow you around for about 7 years or so.
The Truth: If you haven’t recovered from your early adulthood faux pas a licensed agent will easily be able to help you get in touch with the right lenders who “get it” too. These lenders are built to help people with low credit scores purchase homes. So they will happily approve your loan and keep the stress lighter than you think.
Myth #2: You need 20% down on a home.
If you breathe air you’ve heard this one. It has you believing you need to save up $20,000 to put down for a $100,000 mortgage. Yikes. Wouldn’t $7,000 sound a lot more feasible? Good, because that’s closer to the truth.
The Truth: Most lenders only ask for 5% to 10% down. You will have to cover the cost of private mortgage insurance (PMI) with those low down payments. Now, if you want to avoid the paying PMI you can put 20% down. But that’s optional, not required. And FHA loans (government backed) only require 3.5% down.
There are also programs that assist with down payments. They’ll help cover closing costs to ease the pain too.
The key here to remember is that you have plenty of options and opportunities at your disposal if a down payment is feeling out of reach right now. A licensed agent is fully knowledgeable about these options and can help you. Just click here for a consult.
Myth #3: A home can “pass” or “fail” an inspection
You might think that when you’re going through the closing process the home will need to
“pass “ inspection to give you a sense of relief and before you can purchase it. That’s not the case.
The Truth: There is no pass or fail grade for homes. On the contrary, the purpose of the home inspection is only to report the condition of the property. It’s to help you catch things you might miss so you know what you’re buying. Home inspectors can give you advice on the recommended repairs. The choice to accept the condition of the home is based on your tolerance for the current condition.
So, you’re free to purchase any home you want regardless of flaws, adjust your bid accordingly, or pass on it with full knowledge of what you’re getting or giving up.
That’s Not All
Hopefully you see now that buying a house is a lot more financially feasible than you think. The government and lenders understand that the average person doesn’t just have 20 grand and a 750 credit score on hand, yet many average people own homes. But there are more myths too, and honestly the best way to understand what your options are and what your next step is is to consult a professional.
So give me a shout so you can start 2019 off with your own home.
Born and raised in Washington DC but making his home in Columbus, Kareem Jackson has lived in Ohio since the fall of 2001. Majoring in Communications at the Ohio State University, Kareem graduated wit....