Are you ready to become a homeowner from renter? Isn’t it the most exciting thing! But at the same time you must be scared of several factors that contribute to the intimidating process of home buying.
You may be asking for advice from friends and relatives who already own homes. It is sure a good way to start however not the best one!
Why we say so? Because they will give you advice (with good intention) yet it won’t be coming from the experts! Right?
According to a recent survey conducted at the 2017 Mortgage Bankers Association Secondary Market Conference recently held in New York City, thirty-nine percent of mortgage industry professionals believe that consumer’s lack of knowledge about the home buying process is the biggest hurdle to first time homebuyers.
Let Stress Free Mortgage help debunk the most common 5 myths or fears related to home buying process so that you can begin your house hunting with a clear mind
Your down payment must be 20%
As per the survey, 28 percent of mortgage professionals said that consumers still have this belief that 20 percent down payment is a requirement for purchasing a home. Moreover, there is a bigger myth that persists in homebuyers—consumers who believe that 20 percent down payment is not mandatory to buy a home, they still think that it is difficult to get into a house with less.
But many lenders will be glad to offer up home loans with 10% or 5% down. In fact, there are many programs designed to help low income families. Stress Free Mortgage can help you understand which program will work best according to your situation.
You can't buy a house with bad credit
Let bad credit score not stop you from buying your dream home! There are various other options that can help you get a loan. Stress Free Mortgage does all the legwork for you and helps you with pre-qualifying and gets the best deal possible.
Just to let you know, apart from conventional loans where having bad credit means a STOP, there are other kinds of loans like FHA loans where you require a mere 3.5% down payment and people with low credit score can also qualify.
A 30-year mortgage is the best option
Most people opt for 30 year fixed rate mortgage so that their monthly payment is lower than 15-year plan. But this is not the best option!
You are borrowing the same amount of money for twice as long and that too at a higher rate of interest.
One must keep open mind toward other loan plans. A mortgage broker like Linda from Stress Free Mortgage can provide you with more options to find the best possible loan suiting your needs.
You don’t need an agent to purchase a home
Maybe you’re thinking that in the age of Internet, you can do everything yourself. While you could do your research on the Internet, it might not be the best way to go. When entering into what is likely one of the biggest financial transactions of your life, wouldn’t you want guidance from someone that does this every day for the last 20 years?
With all the obstacles and twists and turns in the real estate process, we highly recommend using a real estate agent to do the deep searching that you might not have the time to do. By entrusting such a major life decision to those with the expertise, you greatly increase your chances of getting into the home you really want.
The asking price is the final amount
There is always a room for negotiation. If you have an awesome credit, pre-approval and a down payment ready to go then sellers often are willing to confer rather than to wait for another home buyers.