Buying your first home is an exciting and nerve wracking process. This is your first time making such a big financial investment. Trying to figure out what you’re supposed to do and how the process works can be daunting. It’s no wonder that a lot of first time buyers have misconceptions about buying a home.
Take a look at this list to bust a few of those myths.
Myth: You Need a 20 Percent Down Payment
The 20 percent down rule isn’t really a rule. FHA loans require 3.5 percent down. Some conventional loans let you pay as low as three or five percent. If you’re active duty or retired military, your VA loan is zero percent down.
Myth: You Need Perfect Credit to Get a Mortgage
While lenders have tightened their credit requirements since the recession, it doesn’t mean your credit has to be perfect. Your interest rate or down payment may be higher but in most cases, buyers with “okay” credit will be able to find a mortgage that works for them. FHA loans even allow borrowers with credit scores as low as 580.
Myth: The Buying Process is Too Complicated
If you decide to buy your home without the help of a Realtor, yes, it will be a very complicated process. Scheduling showings, negotiating a contract, working with home inspectors, title companies, and more – all of these things are hard work. As a buyer, working with a professional real estate agent who understands the market and listens to you will make the buying process much easier.
Myth: If It’s Not Perfect, You Shouldn’t Buy It
You should only buy a home you really want. That being said, there’s rarely such a thing as “perfection.” The best thing to do is come up with a list of must-haves and a list of things that would be nice to have. Hold out for your must haves but expect to compromise on the rest. Maybe the carpet is ugly but the layout is just right. Maybe the walls are hideous but you love the backyard. Look for the potential in each home you view.
Myth: There’s No Inventory
Listen to the national or state real estate news, and you’ll think there’s not a single home on the market. Not true. In Okaloosa County, our inventory is lower than usual but that doesn’t mean you can’t find a home to buy. That being said, homes being put up for sale can and do go quickly. If you know exactly what type of home you’re looking for, you may need to act quickly when it comes on the market.
When you’re ready to make the leap from renting to owning, the most important part of the process is finding the right person to work with. They should be willing to share information, answer your questions, and guide you through the entire process from start to finish.
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