Here are eight of the most common homebuying myths, and why they're wrong:SourceMoneyGuru-https://www.mgkx.com/5009.html
1. You need 20% down.
This is one of the most common homebuying myths, but it's simply not true. There are plenty of loans available that allow you to put down less than 20%, such as FHA loans and VA loans. In fact, even some conventional loans allow you to put down as little as 3%.SourceMoneyGuru-https://www.mgkx.com/5009.html
2. Getting prequalified for a mortgage is better than getting preapproved.
Prequalification is just an informal estimate of how much you qualify for. Preapproval, on the other hand, is a more formal process that involves providing your lender with documentation of your income, assets, and debts. Preapproval is much more valuable to sellers, because it shows that you're serious about buying a home and that you're likely to be approved for a loan.SourceMoneyGuru-https://www.mgkx.com/5009.html
3. Your only buying cost is the mortgage.
In addition to the mortgage, there are a number of other closing costs associated with buying a home. These can include things like appraisal fees, title insurance, and recording fees. Closing costs can add up to 2-5% of the purchase price of the home, so it's important to factor them into your budget.SourceMoneyGuru-https://www.mgkx.com/5009.html
4. Your only ongoing cost is the mortgage payment.
In addition to your mortgage payment, you'll also have to pay property taxes, homeowners insurance, and maintenance costs. Property taxes can vary depending on the location of the home, and homeowners insurance can vary depending on the size and condition of the home. Maintenance costs can be unpredictable, but it's important to budget for them so that you're not caught off guard.SourceMoneyGuru-https://www.mgkx.com/5009.html
5. The lowest initial interest rate is always best.
It's true that a lower interest rate will mean a lower monthly payment. However, you shouldn't base your mortgage decision solely on the initial interest rate. You also need to consider the length of the loan and the lender's fees. An adjustable-rate mortgage (ARM) may have a lower initial rate than a fixed-rate mortgage, but the rate could go up in the future. If you're not sure which type of mortgage is right for you, talk to a financial advisor.SourceMoneyGuru-https://www.mgkx.com/5009.html
6. An agent isn’t necessary when you’re buying a home.
An agent can be a valuable asset when you're buying a home. They can help you find homes that meet your needs, negotiate the purchase price, and close the deal. In many cases, the seller will pay the commission for both the buyer's and seller's agents, so you won't have to pay anything out of pocket.SourceMoneyGuru-https://www.mgkx.com/5009.html
7. You don’t need to shop around for a mortgage.
This is a mistake that many homebuyers make. Shopping around for the best mortgage rate can save you thousands of dollars in interest over the life of the loan. Get quotes from at least three lenders before you decide on a mortgage.SourceMoneyGuru-https://www.mgkx.com/5009.html
8. Buying is always better than renting.
This is another common myth. While buying a home can be a great investment, it's not always the best option for everyone. If you're not sure whether buying or renting is right for you, talk to a financial advisor.SourceMoneyGuru-https://www.mgkx.com/5009.html
I hope this blog post has helped to dispel some of the common homebuying myths. If you're thinking about buying a home, be sure to do your research and talk to a financial advisor to get the best advice for your individual situation.SourceMoneyGuru-https://www.mgkx.com/5009.html SourceMoneyGuru-https://www.mgkx.com/5009.html