You've decide to buy a new home. Congrats! Home buying is an exciting but daunting task. Whether you are a a new or experienced home buyer, there are a lot of common misconceptions about the process that can cause you more stress and difficulties immediately and into the future. Let us help you outsmart these misconceptions and know all the facts before you set off on your journey towards your dream home!

 

Common Misconception: The Home Search is the First Step.

Truth: Although searching for homes on the internet might have jump started your journey towards home buying, it should not be prioritized as your first step in the process. Stop searching for homes and FIRST focus on your finances. This involves making sure your credit standing is good and receiving pre-approval for a mortgage. By focusing on your financing before searching, you can accurately know what homes on the market fit within your budget and focus your search within your parameters. There are few things worse than having your heart set on a home only to discover that there is no way you can afford it.

 

Common Misconception: Bad Credit Disqualifies You from Buying a Home.

Truth: While having good credit is obviously to your benefit during the home buying process, you still have options even if your credit is not stellar. Home buyers with bad credit have financing options, such as FHA loans, that might be available for them. It is important to take the time to research your options.

 

Common Misconception: 30-Year Mortgages Save You Money.

Truth: It all comes down to math. Regardless of whether you choose a 15-year or 30-year mortgage, you are borrowing the same amount. However, you are multiplying the amount of time that you are paying back that amount by 2. This means more interest is accruing over this additional time and you will end up paying MORE. This is not to say that a 30-year mortgage is not your best option. Just ensure that you do plenty of research on all the loan options available to you to select what best fits your financial situation now and into the future.

 

Common Misconception: The Down Payment is your ONLY Upfront Cost.

Truth: Home buyers need to budget for several costs that can quickly add up during the process. Along with the down payment, home buyers should plan for credit report, inspection, and insurance costs. The deal you settle on with the seller could require you to pay for the closing costs as well.

 

Common Misconception: Your Down Payment Should be 20%.

Truth: A 20% down payment can help make you competitive amongst other buyers and can help you avoid paying for Private Mortgage Insurance (PMI). However, not all lenders require that amount. You may be eligible for a down payment of 5% or 10% if you are willing to pay for PMI monthly. There are also FHA loans and other down payment assistance programs that might be available to you.

 

Common Misconception: A Home Inspection is NOT a Necessity.

Truth: You should never waive the home inspection, no matter how much you want the house. Some sellers will try to negotiate this into the agreement but it is not in your interest. There is too much risk of there being something wrong with the house. You could end up having to spend a fortune in your money and time by skipping this step. Ensure that you find any potential issues with the house before you purchase it.

 

Common Misconception: Focus on Your Immediate Needs.

Truth: You should always consider what you and your family need in a home right now and into the future. Although it is impossible to know what your future holds, you want to choose a home and neighborhood that fits your needs now and indefinitely. Whether or not you have or will have children, find a home near good schools. Research has shown that homes near excellent schools have a higher resale value.

 

Common Misconception: You Must Offer the Asking Price.

Truth: Although you might fear losing your home to competition by offering a lower price, you should always try to negotiate a deal that best fits your need. Sellers are obviously hoping to get top dollar for their home but they also want to sell it quickly and easily. By showing that you have good credit, are pre-approved for a loan, and/or have your down payment ready to go, sellers will likely be willing to negotiate with you since your finances are in order. Also, the results of the home inspection can also be used to help you negotiate a lower price.

 

Common Misconception: You Can Go It Alone.

Truth: While the internet makes the search for homes arguably easier and more convenient for individuals, you should always work with an Experienced Realtor during the home buying process. There is a wealth of knowledge that only realtors can offer! We understand the local market, have years of negotiation experience, and so much more. We can help alleviate the inevitable stress that comes along with the home buying process by being by your side and always keeping your best interests at the forefront.


Ready to BUY your dream home in the Whittier area? Work with the very best! Give The Domis Team a call today or visit our website at http://lindadomis.com/!