Some Common Home Buying Myths You Should Be Aware of

Some Common Home Buying Myths You Should Be Aware of

First-time homebuyers are often led astray by myths that make the process much more complicated than it really needs to be. Learning the key facts about the home buying process will open up doors that many may have thought were closed. Take a few minutes and discuss your options with a reputable insurance agent, and you might find out that buying a home is much easier than you thought. It will also help you get the best deal on a mortgage.

20% Down Payment Is Always Required

Contrary to what many people believe, you don’t always need 20% down to buy the home of your dreams. Some loans that are geared for veterans require less than 5% down. There are other loan options that may be able to get you approved with a $0 down payment. Do your research and find out what loan options are out there. With the right lender, you may get a lower interest rate with less money down and still get the home you have always wanted.

Buying Your Home Is Better Than Renting It

Many people look at renting as throwing your money away. Depending on your situation, buying a house at the wrong time may cause you undue financial hardship. If you aren’t sure you want to remain in one area for a long period, buying a home may anchor you there even if you would rather be somewhere else. Before buying, look at your future goals. Renting is a good option if you plan on moving in the future.

You Don’t Have to Comparison Shop for a Mortgage

Taking advantage of the first lender that approves you is not a good idea. Look around before you apply. Different types of lenders will offer different options. The key is looking at your long-term goals and choosing a loan that actually corresponds to your needs. They are out there, and you just have to take the time and initiative to look for what you want and need.

Your Mortgage Is Your Only Homebuying Expense

When buying a home, your mortgage is just one of many expenses you will need to cover. You will be required to pay a portion of the closing costs and any taxes due. You’ll also need to pay for a homeowners’ insurance policy. Depending on who has agreed to pay for the inspection and appraisal, you might also need to pay for a portion of those costs. Instead of rolling expenses like closing costs into your mortgage amount, you can save on the interest by paying for them in cash.

You Always Have to Go Through an Agent to Buy a Home

Contrary to what you may have been told, you don’t have to go through an agent to buy your home. If you know what realtor is selling the property, you can work directly through them to put in your bid and buy your home. If you don’t have a real estate agent of your own, you may want an attorney to go over the paperwork for you. However, opting for a buyer’s agent can save you a lot of time and effort during the homebuying process

When you are ready to buy your first home, call the insurance experts at Gee-Schussler Insurance. Our experienced insurance professionals can debunk any myths you may have about buying your home and can expertly guide you through the process of buying a home. Call and schedule an appointment today and get the answers you need to all of your questions.