Home Buying Myths
The home buying process can be a stressful at times, especially when you are a first time home buyer. Let’s review some common misconceptions and reduce some stress while we’re at it:
* A 30 year mortgage is always the best deal. That is not necessarily true. While monthly payments may be lower, the longer the fixed rate mortgage stays in place, the higher your interest rate and interest payments will be. We encourage our clients to explore and compare all options available.
* You need a 20% down payment to buy a home. This is simply not true. There are so many options available in this market. More than 17% of first-time homebuyers in 2017 have put down less than 5% on their home purchase (The Z Report). Some options even provide a zero downpayment (USDA loans). If you have questions regarding the many programs available, reach out to your lender or contact PrimeLending.
* Appraisers set the value of a home. This is also not true. The homeowner, with the advice of their REALTOR®, set the home’s market price. The appraiser’s role is to produce a credible opinion of value which reflects the current market for the lender.
* You need perfect credit to buy a home. While a perfect credit score would be ideal, keep in mind that acceptable credit scores range from 500 to 850… with the majority falling between 600 to 700. Lenders do consider many factors before they approve a loan.
Hopefully, clearing up a few of the misconceptions in the home buying process will help to make your next home purchase a stress-free experience and you can be smiling as you get your new set of keys.
Do you have other real estate questions? Get them answered by working closely with a professional REALTOR® to guide you through the home buying process.
Get a FREE Home Buyer’s E-Guide Here: HOME BUYER’S E-GUIDE
Text or Call: 480-433-9949
My American Dream Team of Berkshire Hathaway HomeServices
Text HOMELIST to 4804339949 to access our Mobile MLS App
Search all homes for sale at arizonahomesearcher.com