5 Myths About Buying a House
5 Myths About Buying a House
Nicole Serviss, RE/MAX Elite
The 5 most common myths, busted!
1. You need a 20% down payment.
False. While it's best practice to put 20% down to avoid paying mortgage insurance, you can find loans that offer great terms as low as 0% down.
2. You need to pay your Realtor.
False. The seller pays for the real estate commission.
3. Your credit score needs to be perfect.
False. You only need a 620+ to qualify. Different loans and programs have different requirements, but if you’re close to that score, it’s worth it to talk to a lender and find out if you can be approved for a mortgage.
4. You should wait to apply for a loan until you've found your dream house.
False. You’ll want to get pre-approved (and that’s different than pre-qualified) before you start the home shopping process. Why? Because when you submit an offer on a house, you include your pre-approval letter with your offer to prove to the sellers that you can afford this house. You don’t want to miss out on your dream home while you’re waiting for your lender to approve you.
5. My 100% Perfect house exists.
False. Even people that custom build their home always have something they'd change about it. When you walk through a house, rate it from 1 to 10. 10 being your dream house. If you rate it around an 8.5-9.5, that's a house you consider writing an offer on. Ask yourself what this house needs to be a 10. Then make sure those are things you're willing to compromise on. If not, are they things you can afford to fix.
I hope you found this information helpful. If you did, or if you have any questions, please let me know.