The recent recession that we all faced – and some are still facing – has led to numerous rumors about the real estate market and the process of home buying. That’s the thing, though; they are just rumors. So, if you’re thinking about purchasing a home, but have been scared away due to “rumors” floating around, here are the top real estate myths explained.
- Bad Credit = No Mortgage – This is probably one of the most common myths out there. Many with bad credit do not want to attempt to buy a home because they are afraid of the rejection. However, because of the recession, lenders are more willing to work with interested buyers with less-than-perfect credit and get them into a home.
- You Should Only Consider a Fixed Mortgage – While a fixed-rate mortgage is going to be more appealing, statistics show that the average household in America stays in their home for approximately seven years. Fixed-rate mortgages typically have higher interest rates than an ARM, or an adjustable rate mortgage.
- Save Money by Kicking the Realtor to the Curb – In truth, you won’t save that much by not working with a realtor. They know the real estate market inside and out, have the ability to negotiate on your behalf and can handle the paperwork so that you don’t have to – except for some signatures, of course. The amount of money that you would save is simply not worth all the hassles that’ll you endure.
- You Need 20 Percent in the Bank Before Scouring for Houses – While 20% is the number that everyone heard during the housing market crash, you are likely going to find it easy to get a loan with a much lower down payment, especially for a new home. The best way to find out how much of a down payment you’ll need is to speak with a lender to determine what you qualify for. You may be able to qualify for a down payment as low as 3.5 percent!
- The Sooner You Buy The Better – Buying a home is a very huge decision for you and your family and it is not one to take lightly. Therefore, do not purchase until you know you are ready for the type of commitment that a home purchase carries. Just because today is the right time to buy a home for your best friend does not mean that it is the best time for you.
To learn more about the real estate market or if you have questions about real estate escrow, please don’t hesitate to give us a call at Brighton Escrow.