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So, you’ve decided you’re ready to take the leap from renting to home buying. Congratulations! Becoming a homeowner is a rewarding experience in a multitude of ways. Unfortunately, however, it’s not quite as simple as deciding to do so.
Navigating the housing market can be tricky, especially because there’s no shortage of misinformation out there to lead you in the wrong direction. But don’t worry, we’re here to help!
Listed below are a few of the most common misconceptions around buying a house. By learning about them, you can avoid the pitfalls that have trapped countless buyers before you. Keep reading to learn more!
A 20% Down Payment is Required
We’ve all heard of the daunting “20% down payment” when it comes to buying a home. You’re browsing Carolinahousesforsale.com and worrying about where you’re going to get $60,000 for that $300,000 home. But take a breath – this isn’t your only option.
Here’s the thing. A 20% down payment is necessary to avoid paying PMI (private mortgage insurance) on top of your monthly mortgage payment. However, it’s not a requirement of buying a home. In fact, there are many home loans that require as little as 3% down!
A Real Estate Agent is Unnecessary
While you can shop for and buy a home without the help of a real estate agent, you really shouldn’t. Buying and selling a home is stressful no matter what, but having a real estate agent at your side can make things a lot easier.
A real estate agent brings knowledge and expertise to the table that will remove all the guesswork from house hunting and negotiations. You’ll still have work to do and decisions to make, but hiring the best realtor you can will take a huge percentage of the weight off your shoulders.
A 30-Year Mortgage is Best
The standard mortgage comes with a 30-year term. Most people go with this option because they assume that their mortgage will be cheaper; however, this usually isn’t the case.
The other most common option is a 15-year mortgage, and though it’s true that the monthly payments are higher in this case, let’s break it down a little further.
A 30-year mortgage typically means paying more in the long run because you’re borrowing the same amount of money for twice as long. In addition, interest rates are higher with a 30-year option, increasing your loan total even more.
This isn’t to say 30-year mortgages are bad, but be sure to consider all your loan options before signing the paperwork.
Conquer Home Buying by Ignoring These Myths
Even with a top-notch real estate agent well-versed in your local real estate market, home buying is a complicated process. Don’t make it harder for yourself by buying into these common myths!
By having a more thorough knowledge of the home buying process and what to expect along the way, you can approach buying a home with confidence.
Interested in learning more about finding the perfect home for you? Take a look at our blog for tips and ideas to point you in the right direction.