The home buying process can be a stressful experience, especially for first time home buyers. Let’s take a look at some common home buying myths:
- A 30 year mortgage is always the best deal. Not necessarily. While monthly payments may be lower, the longer the fixed rate mortgage, the higher your interest rate and interest payments will be… so explore and compare all options available.
- You need a 20% down payment to buy a home. Not true. Many financing programs are available… and some require down payments of as little as 3.5%.
- Appraisers set the value of a home. Also not true. The homeowner, with the advice of their REALTOR®, set the home’s market price. The appraiser’s role is to produce a credible opinion of value which reflects the current market for the lender.
- You need perfect credit to buy a home. While a perfect credit score would be ideal, keep in mind that acceptable credit scores range from 500 to 850… with the majority falling between 600 to 700. Lenders consider many factors before they approve a loan.
Have other real estate questions? Get them answered by working closely with a professional REALTOR® to guide you through the home buying process.
