So you're finally ready to make the transition into home ownership? That's
awesome, and in this exciting time you might be turning to friends and family for an insight into the process. However, there are some common myths that seem to circulate in regards to the home buying process, and we're here to help clear those up!
1. THE FIRST STEP IS SEARCHING FOR A HOME
You know the saying, "Don't put the cart before the horse," well that's important to remember when it comes to buying a home. You don't want to start looking for a house until you have gotten to sit down with a lender and discuss what you will comfortably
qualify for. If you fall in love with a house that's $250,000 and come to find out you're only qualified for $200,000 you can get your hopes crushed and waste a lot of time. Don't start the process on the wrong foot, and make sure the numbers line
up. To make things easier, you can start the pre-qualification process right here
2. YOU DON'T NEED A REAL ESTATE AGENT
When buying a home, 99% of the time the buyer's agent's commission is paid by the sellers. That random 1% can be for odd circumstances. So you're getting to use the services of a real estate agent for free. Having a Realtor on your side means
you'll get to see homes that aren't as readily available on public searches, you avoid outdated listings and scammers (there are lots of them), and you have protection when it comes to navigating the legalities of cumbersome contracts. Why wouldn't
you want an awesome negotiator working to ensure you get the best from the transaction? For FREE!
3. YOUR DOWN PAYMENT HAS TO BE 20%
Think you have to sell an arm and a leg to buy a home? Not at all! An FHA Loan only requires 3.5% down, while a Conventional Loan may only require 5% (depending on your credit and other factors). If you have served our country in the military,
you may qualify for a VA Loan, which requires 0% down. If you qualify, this can take a big chunk off the amount of cash you have to bring to the closing table. It's important to talk to a trusted lender to see what the best loan option is for
4. YOUR DOWN PAYMENT IS THE ONLY UPFRONT COST
This is one of the biggest misconceptions. It costs money to buy a home, including various upfront costs. We always recommend that our clients have the home inspected by a certified home inspector. A home inspection will cost approximately $400-$600.
Of course you can also add radon testing, mold testing, etc., for an additional fee. If you are getting a mortgage, the home will have to be appraised. An appraisal can range from $400-$500 dollars. Aside from your down payment, you also need
to consider closing costs. Closing costs can range anywhere between 3-6% of the purchase price, depending on the loan and loan terms. Sometimes it can be negotiated that the seller will cover some or all of your closing costs. The pros and cons
to asking the seller to pay your closing costs should be discussed with your agent.
We would love to schedule a time to meet with you for an in depth Buyer Consultation to share with you all of the details of the home buying process and what to expect. Contact us today to schedule a meeting!