When you begin the journey of buying a home for the first time, it’s normal that there are a million things to think about, and a million questions running through your head. With so much information to take in and such a big decision in front of you, it’s easy to jump to conclusions about the home buying process that are simply untrue. In this blog, we’ll discuss the most common myths people believe about home buying, and the truth behind them.
- Start looking for homes immediately.
We get it. You’re excited, and understandably so. However, don’t start looking at listings just yet. The first step is actually making sure your credit is strong, and getting yourself preapproved for a mortgage. Looking too soon gets your expectations and your hopes up before you are aware of what you can afford, or if you’re even eligible to buy a house. It’s only after that when you can call your real estate agent to get started.
- A 30-year mortgage is the best option.
Extending your mortgage to the longest-length possible is not always the cheapest option. With 30-year mortgages, you end up paying more throughout the life of the loan. This is because with this type of loan, you’re borrowing the same amount of money for twice as long, at a higher interest rate.
- The only upfront cost is a down payment.
This is incredibly false. There are many hidden costs associated with buying a house that home buyers don’t think about. For example, it’s possible that the seller may determine that you’re responsible for closing costs. This is typically anywhere from three to six percent of the purchase price. Not to mention the host of taxes, fees, and costs for inspections, credit reports, and insurance.
- It’s cheaper to rent than it is to buy.
This is not true. The reality is that it depends on where you live, and the type of home you are wanting to rent. Rent prices have increased dramatically in recent years, and often the price of rent is the same as a mortgage would be, and many people find the real estate investment worth it.
- You don’t need a home inspection.
This myth is not only false, but dangerous too. Even the newest homes need an inspection to make sure it’s the safest and healthiest place for you to live. It’s not uncommon for home builders to overlook things and rush the job, forgetting important details that can cause problems. Home inspections are worth the investment to save you money in the future. Often, if you get the home inspected, you can get the necessary fixes done before you close on the house and it’s too late.
- You don’t need a real estate agent
Many first time home buyers don’t feel the need to invest in a real estate agent’s expertise and believe they can go it alone. This hardly ever works for anyone. In order to be smart in the home buying process and not end up overpaying or dealing with big issues with the home, it’s best to invest in the guidance of an expert. Real estate agents have the knowledge and the tools to spot things you can’t.
At Schreiner Realty, our expert real estate team is committed to making sure you get the home you’ve always wanted. If you are in the Gilbert, Mesa, Tempe, or Chandler area and are looking to buy a home, give us a call today.