Setting the Record Straight: Top Home Buying Myths by Courtney Soinski Whether you’re a real estate professional or first-time home buyer, the home buying process and real estate transactions can be stressful. There tend to be some common misconceptions in this process, so it’s very important that you’re well informed of what is fact and what is fiction. We’re here to set the record straight. Myth #1: You don’t need a REALTOR®. Before you bravely take on one of the biggest purchases or sales of your life, remember this: it’s not as easy as it looks. REALTORS® know all the ins and outs of the local area as well as the market in which you’re looking to buy or sell. Picking up the phone and calling a REALTOR® may be one of the best decisions you’ll make. Myth #2: The bigger the down payment, the better off you’ll be. Buyers’ immediate reflex is to put as much cash down as they can when buying a new home because they’ll borrow less, lower the monthly mortgage payments, and won’t need to buy mortgage insurance. However, putting 20% down is not a requirement and it’s not for everyone. Thanks to Federal Housing Administration Loans (FHA Loans), you can put as little as 3.5% down. With this method, you’ll potentially have a lower interest rate, giving you more flexibility. Your money is not all tied up in your house like in a traditional down payment that can leave you with little or no extra cash to spend on home care, improvements, or any other unforeseen circumstances. Myth #3: Appraisers set the value of a home. The role of the appraiser is to produce a credible opinion of value that reflects the current market. Appraisers are not responsible for setting the value of the home and they also do not confirm a home’s sale price. According to David S. Bunton, President of The Appraisal Foundation, “Appraisers provide an analysis of the collateral, so that lenders understand the value of a property when making the loan decision.” Myth #4: You need perfect...
Posted on: Thu, 10 Apr 2014 23:05:08 +0000
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