5 Real Estate Myths Busted

Myth #1: 20% Down payment is required to buy a home.

Don't be deterred by the myth that a 20% down payment is necessary to purchase a home - many programs are available with the average 1st-time buyer requiring only 6%. If you can put more money towards your initial payment, however, more significant advantages such as lower interest rates may come into play. Exploring your options and discussing them with an experienced lender will help ensure success in finding affordable homeownership!

Myth #2: Looking at homes is your FIRST step in the home-buying process:

Wrong - preapproval comes first! Every prospective homebuyer should obtain a pre-approved mortgage prior to house hunting. Not only will it give you the confidence of knowing your price point, but also set you up with greater bargaining power when the time comes to make an offer.

Myth #3: Getting pre-approved will affect your credit score.

Getting pre-approved is one of the most important steps in buying a home. Although this process affects your credit score by as little as 5 points, it’s not enough to impact or ding your credit score with a negative outcome. Be ready when you get pre-approved, as you will want to avoid having to go through the process multiple times as it could then “ding” your score with a negative impact.

Myth #4: Your down payment is your only upfront expense when buying a home.

Keep these in mind when budgeting. Your mortgage lender will assist in coming to a final number.
-mortgage payment
-Property taxes
-Homeowners Insurance
-Mortgage insurance (if applicable)
-Closing costs
-Utilities
-HOA dues (if applicable)
-Maintenance

Myth #5: Never offer full asking price in today's market.

Even with the market settling into a more normalized state, it is still possible to find yourself in fierce competition for desirable properties. Bidding wars are not uncommon and offering full price may be necessary if you want your offer seriously considered. Working with an experienced agent can help provide insight on when best to make such offers, allowing you maximum opportunity for success!

Can we answer any real estate questions you might have?! We’re here to help. Whether you have questions about the real estate industry, trends, best practices, or regulations, our team of experienced professionals can provide you with valuable insights and advice. Reach out today and let us know how we can help! Let’s get started on your journey toward success in the real estate industry!

Schedule today! www.calendly.com/truengroup