Buying a home is a serious commitment that requires a lot of forethought and research. However, you can’t believe everything you hear.
Whether you’re talking to friends, family members, or co-workers, it’s important to check your facts. The advice you get from well-intentioned people may not be accurate.
We’re here to help you separate fact from fiction. Keep reading for the top home-buying myths in the industry today.
You Don’t Need to Get Preapproved
As a first-time homebuyer, you might not be aware that getting preapproved is the first step in the process. Some people might tell you it’s unnecessary, but we know better.
Getting preapproved is important for several reasons.
First, you need to know where you stand with banks and other mortgage lenders. Your credit approval will tell you exactly how much money you can borrow. It will also provide insight into your potential monthly payments and interest rates.
Not needing a preapproval is one of the most detrimental home-buying myths because it can compromise the credibility of your offer. Offers that aren’t backed by preapproval letters carry less weight. If you’re bidding against a preapproved buyer, the seller will choose them over you in a heartbeat.
You Must Have Outstanding Credit
There are countless types of homes and home loans available to people in all financial circumstances. One of the most common home-buying myths is that you need to have an amazing credit score to qualify for a home.
In truth, you can qualify for an FHA loan with a credit score as low as 500. Of course, these types of home loans can come with higher interest rates and mortgage insurance fees.
You Don’t Need a Realtor
As a first-time homebuyer, we highly recommend hiring a real estate agent to help you find the perfect home. They can provide you with essential home buying tips to ensure you’re getting the right home in the right location for the right price.
Realtors will also help you gain access to more listings, which you will be able to tour in person. Finally, real estate agents are well-versed in the art of negotiation. Working with an agent will ensure you get a better deal on your house.
You Can Skip the Inspection and Appraisal
A smart homeowner knows the importance of getting a home inspection and a third-party appraisal. The idea that you don’t need either of these things is one of the most dangerous home-buying myths.
An official inspection will identify any home damages or issues that you need to know about. Based on this information, you can request repairs, updates, or a lower asking price.
A home appraisal verifies the home’s current value in the real estate market. The seller may be asking for far too much. If you pay those costs, you’ll be getting a home with negative equity.
Are You Falling for Common Home-Buying Myths?
Are you a first-time homebuyer looking to avoid common home-buying myths? We hope this article helps set you straight.
Just remember to take your time and trust your realtor. And if you’re looking for any more real estate advice or homeownership tips, look no further. Our blog was created to help people like you find all the answers to life’s questions.