If you are a first-time home buyer, then there’s a lot about the home buying process that you will learn from experience. Hopefully, you’ll do a bit of research on your own as well. However, it’s important that as you try to educate yourself that you don’t fall for some of the more common home buying misconceptions. The following are three of the common home buying myths that you should be aware of:
Myth #1: You don’t need a real estate agent
Many people mistakenly think that a real estate agent is unnecessary. Yes, you can find listings online and you can schedule your own showings. However, a real estate agent can locate newly listed or unlisted houses, schedule showings, provide professional advice, negotiate terms and much more. Going without a real estate agent can end up being a big mistake.
Myth #2: You have to put down a 20 percent down payment
If you can put a 20 percent down payment on a house, that’s great. However, it’s not required. You can offer a smaller down payment, although you will have to pay private mortgage insurance as a result. There are even some programs, such as the FHA and VA programs, that allow you to put as little as 0 to 3.5 percent down.
Myth #3: A 30-year mortgage is your best option
The monthly payments for a 30-year mortgage will be less than a 15-year, which is why it’s so popular. However, you will end up paying more in interest over a longer period of time. If you don’t plan on living there for a long period, a 30-year mortgage won’t make much sense either.
Don’t fall for these three common home buying myths. For more advice concerning the home buying process, be sure to contact us at Randy Lindsay today.