The Housing Market: 5 Big Myths Busted

These five myths might make the process harder than it needs to be.

It’s common for first-time homebuyers and experienced homeowners to feel overwhelmed by the purchasing process. Plus, myths and misconceptions often make the experience even more confusing. If you’re thinking of buying this year, don’t let these misleading ideas deter you from your goals. Here are five of the most common myths:

1. You need a certain credit score. While mortgage programs do have credit score minimums, you’d be surprised at how low those go. With an FHA loan, you may be able to get financing with a score of 500. Just know that your score may also affect the interest rate and terms of the loan.

2. You should only buy during certain seasons or under certain market conditions. While competition may seem fierce lately, that doesn’t mean you shouldn’t buy a house. As long as you choose a home you can afford and one that will grow in value, it’s still a smart long-term investment.

“Don’t let these misleading ideas deter you from your goals.”

3. It’s cheaper to rent than it is to buy. Home prices have risen lately, but rents have also jumped significantly. Since homeownership allows you to build equity and wealth over time, it’s important to crunch the numbers before assuming you’re better off renting.

4. You have to get a mortgage from your bank. Your bank should be on the list, but don’t limit your shopping to just them. Get quotes from several banks and lenders to ensure you get the best deal.

5. You should waive your inspection to win a bidding war. Waiving your right to an inspection might help you beat out other offers, but it can also come back to bite you. Inspections often reveal costly and even dangerous defects, and you’ll want to know about these before deciding to buy.

If you have questions about buying or selling a home, get in touch with me today by phone call or email. I’d be happy to help with all of your real estate needs.