Myth #1 – You Must Put Down 20%
Saving enough for a 20% down payment can be very difficult, but that is not required to purchase a home. You are able to avoid paying PMI if you put 20% down but a lot of lenders offer loans with 10% down or even less!
Myth #2 – The Down Payment is the Only Up-Front Cost
You’ve saved enough for a down payment and now your up-front costs are over, right? Wrong! There are a number of additional up-front costs you will need to be aware of when buying a home. You will need to pay for things such as a home inspection, closing costs and repairs that aren’t covered by the seller. Make sure you have enough saved up to pay those extra costs!
Myth #3 – The Internet is Just as Good as a Realtor
The internet is a wonderful thing and most of us get a lot of information from it. What you won’t find with the internet is the experience needed to make the home buying process go smoothly. That’s why you should use a real estate agent when buying a home. Not only will they save you a lot of time finding the right home for you, they bring so many tools to the table that the internet can’t offer you.
Myth #4 – Home Inspections Are Optional
You may be quick to skip a home inspection because you want to lock in a deal, so you can get the house you want. A home inspection will uncover any major issues with the home that will need to be fixed. If you waive a home inspection you could walk into a lot of issues that were overlooked, costing you even more money.
Myth #5 – A 30-Year Fixed Rate Mortgage is the Only Option
30-year fixed rate mortgages may be the best option for people who plan on staying put for a long time, but there are other options out there. Choosing a 15-year or 10-year fixed mortgage could have advantages such as a lower interest rate.