With access to so much information right at our fingertips, it’s hard to differentiate between good and bad advice. The same holds true for buying a home. Whatever you’ve heard before, check to make sure you aren’t following one of these common real estate myths.
Myth #1: First, you just need to start looking.
Absolutely don’t do this. Before you begin to search houses on the market, get all your ducks in a row. Buying a house is a process with armfuls of paperwork and tasks. Make sure your credit score is in good shape prior to house hunting. Additionally, get pre-approved for a mortgage before browsing through the market. You don’t want to find your perfect house and then have to scramble to get everything lined up to start the official buying process.
Myth #2: A 30 year mortgage rate is always the wisest option.
Sure, a 30 year mortgage rate will keep your monthly payments in a more reasonable amount than a shorter term. But in the long run, you will end up paying more in interested than a 15 or seven year plan. Consider how long you plan to live in the house. If moving in the next ten years seems like a possibility, chose opt for a short term mortgage rate.
Myth #3: The only cost you need to worry about now is the down payment.
Think again! Buying a house has several additional fees not included in the down payment. When you are setting everything in order before house hunting, remember to include items such as taxes, inspections, credit reports, and other fees into your estimated expenses.
Myth #4: Home inspections aren’t necessary.
Absolutely do not skip this important step. Home inspections can bring to light issues with the house that are not evident to the untrained eye. A seller’s goal is to sell their house. Once that sell is made, any fixes are now on you. Even if you feel pressured to buy quickly and skip the inspection, you might find out your new house has enough problems to be more of a nightmare than a dream.
Myth #5: The asking price is a fixed price.
If you have a good credit score, all your paperwork together, and a pre-approved mortgage then you can haggle out a price. Think of it as buying a car. Use your strengths to help get you a good deal. Plus, another reason why myth #4 should not be followed! If any issues do arise in your home inspection, you can use this another negotiating point.