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10 Common Myths You Hear When Buying A Home

Owning or attempting to own property comes with its own set of challenges. For the most part, myths about buying a home often overtake our thoughts and make us question everything around it. Here are some common myths you hear when buying a home. 

It’s Better to Buy Than Rent

The notion that buying is a better deal than renting is largely rooted in the idea that buying costs less in the long run. Moreover, you get to have a valuable asset to your name. However, the reality says otherwise. The decision to buy or rent depends highly on how long you plan to stay and the property’s price. 

You Should Apply for a Loan After Selecting a House

Buying and selling properties is one of the fastest transactions to happen. While checking out homes and being particular about what you want is important, you will likely lose out on a good deal by delaying the matters. 

Purchase a Home After Qualifying for the Maximum Mortgage

Another common misconception soon-to-be homeowners come across is that you should get a house after qualifying for the highest mortgage. In reality, it doesn’t matter how big or small of a loan you can qualify for but your ability to pay each month. Moreover, keep unexpected expenses that may come along in mind. 

Only Go For Low-Interest Mortgages

Even though low-interest mortgages seem like the ideal choice, there’s a lot more that happens behind the curtains. Usually, loans of this nature are adjustable, which means your interest rate is never fixed and is subject to rising over time. 

Don’t Settle For Something Unless It’s Your “Dream House”

A dream house is sometimes nothing more than an idea, and finding something just the way you had it in mind is not practical. Just because you’re unable to find something close to your liking doesn’t mean you should keep waiting. It’s better to evaluate your wants and needs and start slow. 

The Listing Price of a House is the Final Price

The value of a house is based on the amount buyers are willing to pay. Since there are many buyers, bidding wars become inevitable, increasing the listing price. 

You Must Hire a Real Estate Agent

It’s not necessary to have an agent do the leg work for you. However, since buying a home is a major deal, it is often recommended to get the services of a real estate agent. 

Shopping Around Isn’t Worth It

When it comes to finding a lender, shopping around is worth it. You may end up getting a better deal than what the last lender offered, and it may make a huge difference in the long run. 

Qualifying For a Mortgage With Student Loans is Impossible

Ultimately, it has to do with a lot more than just your credit score. It’s about the debt you owe and its relationship with your credit score and income.  Most lenders typically pay attention to your DTI or debt-to-income ratio when determining what to offer. 

You Can’t Buy a House Without and Excellent Credit Score

The myths surrounding credit scores have always been around. However, not having the best credit score does not mean you can never be a homeowner. Lenders consider several other factors such as your debt levels, assets, and income alongside the credit score.