Buying Myths Busted
There is plenty of information to be found on buying a home. Whether friend or family member, everyone you talk to seems to have a sage word to share about buying a house. Unfortunately, some of that advice may not be so sound. While they might mean well, it is a good idea to temper their “wisdom” with the guidance of an expert like your Summit NJ real estate agent. Here are a few of the most common home buying myths debunked.
Your credit isn’t perfect so you can’t get financing.
Your credit score is the biggest factor in getting a good rate. That being said, it doesn’t have to be perfect to get financing. Scores range between 500 and 850, with most buyers’ scores falling in the range of 600 to 700. The higher your score, the more options you will have for financing. Buyers with higher scores will be offered lower rates, but lenders do look at other factors besides your score. Check your credit score and make sure it’s accurate before you apply for a loan.
Owning is too expensive.
How much are you paying in rent? Owning a home does cost money but renting isn’t exactly free, either. As a home owner, you have certain tax benefits that you are not entitled to as a renter. You will be building equity and putting your payments into something you can one day sell, hopefully at a profit. Rent money will never come back to you like a mortgage payment will. Rental rates can, and usually do, go up at the end of your lease while a fixed-rate loan payment doesn’t change. You should also keep less obvious costs like HOA fees and home maintenance in mind as you budget so that you don’t spend too much. Your Summit NJ real estate agent can help you figure out how much house you can afford.
You don’t need a realtor.
Buying a house isn’t like going the grocery store. The price must be negotiated, there are legal aspects to wade through and you might not even know how to find newly listed properties. Most first-time buyers benefit greatly from the expertise of a buyer’s agent. Your real estate agent will do things like help you figure out the real value of a property by checking the recent sales in the area, which you would be hard pressed to do on your own.
Read up on some of these myths and see if your still believe them. You might find that you’ve gotten more misinformation and less fact from all that advice. Seek the help of a real estate pro to get answers to your questions and divide home buying fact from fiction.