Buying a Home? Be Aware of These Misconceptions

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A house currently listed as for saleIf you’re thinking of making the leap into homeownership, you might be tempted to ask your family and friends for advice. While they intend to help you, they might unknowingly give you bad suggestions or feed you with misconceptions about buying a home.

Altius Mortgage Group and other mortgage companies note that it pays to be aware of the common myths about a home purchase, so you can approach the process the right way. Here are some home-buying misconceptions you need to stop believing:

House-hunting is the first step.

While looking at houses is fun and exciting, this only sets you up for heartbreaks and disappointments when you later find out that you can’t afford it. This is because you might be viewing properties that are out of your price range. Have your budget approved first to know how much you can afford.

I need to have a 20% down payment.

Having a 20% down payment lets you avoid private mortgage insurance, but isn’t realistic for many buyers. If you’re willing to pay for PMI, lenders can offer loans with a down payment of just 3%, 5%, or 10%. This is ideal if you want to buy a house now rather than wait until you amass a bigger down payment.

The home’s asking price is final.

When making an offer on a house, don’t treat the asking price to be set in stone. If you have a readily available down payment, pre-approved mortgage, or a good credit, you can negotiate for a lower price with the seller.

I can skip home inspection.

Says who? Skipping this important process means that you’ll get the property as it is and all the problems that go along with. It is best to spend your money on a thorough inspection to avoid bigger headaches later on.

I don’t have kids, so schools are not important.

Even if you don’t have kids, it is still important to choose a good neighborhood with good schools. The same is also true for other features like transportation — is it easy to commute to work, is it withing walking distance, or is it safe to walk around the area. These will matter if you consider selling in the future.

Buying a home can be a smooth-sailing process if you’re informed about the process. Be sure to work with a team of experts including a lender and real estate agent, so you can approach home buying the right way.

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