Are you ready to buy a home? Not so fast! Even if you have an idea of what is included in the home buying journey, a lot of it may not be true. We are here to steer you towards the truth and knock out any misconceptions when it comes to buying a home.
1. The first step is to look at homes. Nope! Even if it is just for a feel of what you might like, it’s not a good idea. Your actual first step should be getting pre-approved for a mortgage. This will determine your budget and let you know what you can actually look at. Nothing is worse than getting your heart set on a home only to find out you cannot afford it.
2. You don’t need an agent. Actually…you do. It’s very easy to get caught up in home searching websites and thinking you can do it on your own. But your Shorewest, REALTOR® brings skills, background, knowledge and an entire company’s worth of resources that you don’t have access to. They will go to bat for you and will work to make the entire process smooth for you.
3. The down payment must be 20%. Again, nope! A 20% down payment is ideal if you want to skip the private mortgage insurance (PMI), but many lenders offer home loans of 10% or even 5% down with PMI! Talk to any Wisconsin Mortgage Loan Officer about an option that works for you!
4. The only up-front cost is a down payment. At the time of closing there are other expenses that also need to be paid. You may be responsible for closing costs, taxes, cost for inspections, credit reports, and insurance among other things.
5. You can’t buy a house with bad credit. If you are looking at a conventional loan, it may be harder to get approved with bad credit. However the Federal Housing Administration (FHA) has loans that you can qualify for with credit scores even under 600! It’s good to keep in mind that these options look great, but to always discuss with your Wisconsin Mortgage Loan Officer
6. You don’t need a home inspection. Even in a seller’s market, you should always opt for a home inspection. It will save you money and time in the long run.
7. The asking price is set in stone. False! The offer you make on a house does not need to be the asking price. Especially if you have great credit, a pre-approval and down payment ready to go, you should be ready to negotiate. Add in a hot market like today, you may choose to write an offer greater than the asking price!When starting your home-buying journey, go with someone you can trust. Your Shorewest, REALTOR® will provide excellent service and will help you navigate around these seven myths. #ShorewestRealtors #BuyingaHome