As you approach home buying, you will come across a boatload of myths and misconceptions from the real estate industry, especially when you seek advice from misinformed family members, colleagues, and even your own real estate agent! So be careful in seeking for an informative counsel to avoid home buying mistakes.
For a successful purchase of Henderson and Las Vegas homes for sale in Nevada, here are some home buying myths and misconceptions that you should not believe.
Outstanding credit is required
Having a low credit score does not equate to restriction to purchase a home. While it is true that lending companies are strict when it comes to credit standings, they evaluate other factors before granting you a loan. They can look at your debt history and current income and if they see that you are doing fine, they can provide a leeway.
Currently, there are Federal Housing Association (FHA) loans that offer financing opportunities for home seekers with a bad credit score, but conditions still apply like a bigger down payment and a credit score of 580.
20% down payment is a must for mortgage
This is a preferred method but not necessarily required, as it is ideal to lay down a 20% down payment to make your monthly payments lighter. In case you cannot afford it, there are loans like the Veterans Affairs (VA) loan and the FHA loan that accept lower down payments than what is generally expected.
A home buyer should not believe that the only upfront payment to worry about is the down payment. You should also be mindful of appraisals, closing fees, insurances, title searches, and other fees from your lender and third party services which you need to settle.
Do not hire an agent to save money
You could end up spending even more money if you do not have a real estate agent by your side. They can help you get cheaper deals without sacrificing quality because of their experience and expertise in the field. They can also handle paperwork and other processes that some customers would not be able to understand. This alone shows how essential they are during a buying process, so never hesitate to hire one from the start.
No need for home inspection on new homes
Because of fear or losing a home to other interested parties, many buyers are skipping the home inspection process since they believe that a home is flawless if it is brand new. It is risky to buy a home without an inspection because you will take all the problems that you were not looking for.
Invest on a thorough home inspection to save you from expensive costs in the future. Do not fall on the notion of buying a home that only needs renovation because it is cheap. Truth is, you will spend more, especially if there are hidden faults and if you want to refurbish the home.
30-year mortgage is the one to go
Aside from the 30-year mortgage, you can choose the 15-year or 20-year mortgages. Just remember that a shorter term means bigger monthly fees, and a 30-year mortgage gives lower monthly payments with heavier interest caused by the long period.
Do not choose a mortgage plan in a whim. Examine each choice carefully and ensure that they fit your financial status and way of living.
Home buying can be a confusing process. Make sure everything is clear with the help of real estate agents like those from The Brooks Team to give yourself a peace of mind during the entire buying process of purchasing a home for sale in Henderson or Las Vegas in Nevada!