5 Home Buying Myths

1. A 30-year mortgage is the best option
   Most people opt for a 30-year fixed-rate mortgage because monthly payments are lower. This can be a good option, but if you aren’t set on staying in your home for a long time you may want to consider an adjustable-rate or 15-year mortgage, which, for instance, focuses on paying down the house vs. the interest while borrowing the same amount of money over half the time period.
    
2. You can’t buy with bad credit 
   For a conventional loan, yes, bad credit may hinder your options, but FHA loans, which require only a 3.5% down payment, have more lenient guidelines for borrowers with low credit scores - even under 600 could qualify.
    
3. You don’t need an agent
   You might think it’s easy to buy a home on your own, especially with today’s advanced technology, but realtors bring a much needed expertise to the table when it comes to negotiations, search power, and in-depth market knowledge to really get you the home you’re looking for at the best price.
    
4. Just looking casually for a house is not a big deal
   Even at the early stages, you should not only get pre-approved for a mortgage to know your budget, but also focus on how you will get the home you’ve been waiting for in this highly competitive market.  As a realtor, I examine your resources and strategize your purchasing power in areas such as appraisal, loan and inspection contingencies.  Don’t waste your time without a game plan!
    
5. The only upfront cost is the down payment
   Buyers must be prepared for closing costs--fees required as both part of the loan and standard to buying a home.  You will need to set aside roughly 3% of the purchase price for closing costs which are due at closing.  This non-recurring cost typically covers: taxes, fees, interests, hazard insurance premium, and more.