Are you finally ready to make the transition into home ownership? That's awesome, and in this exciting time you can be turning to friends and family for an insight into the process. However, there seems to be a circulation of misinformation spreading around, so we're here to clear up a few myths.
1. THE FIRST STEP IS SEARCHING FOR A HOME
You know the saying, "Don't put the cart before the horse," well that's important to remember when it comes to buying a home. You don't want to start looking for a house until you have gotten to sit down with a lender and discuss what the bank will qualify you for. If you fall in love with a house that's $250,000 and come to find out you're only qualified for $200,000 you can get your hopes crushed and waste a lot of time. Don't start the process on the wrong foot and make sure the numbers line up.
2. YOU DON'T NEED A REAL ESTATE AGENT
For starts, when buying a home, 99% of the time the buyer's agent gets paid by the sellers. That random 1% can be for odd circumstances. So you're getting to use the services of a real estate agent for free. Having a real estate agent on your side means you'll get to see homes that aren't as readily available on public searches, you avoid outdated listings and scammers (there are lots of them), and you have protection when it comes to navigating the legalities of contracts and buying a home. Why wouldn't you want an awesome negotiator working to ensure you get the best from the transaction? For FREE!
3. YOU CAN'T BUY A HOME WITH BAD CREDIT
Fortunately for some, this is a myth. Lenders and banks come by the hundreds of thousands and all though there are a few loan options, a lot of lenders can work with credit scores down to the low to mid 500's. Get in touch with an agent to help you connect with the right lender who can help you potentially approved. There is a lot of factors that go into approvals, but your credit doesn't have to be a sore thumb during the process. However, you will be doing yourself a favor if you connect with a credit repair specialist to at least get those numbers in the 600's. A better score will lower you interest rate.
4. YOUR DOWN PAYMENT HAS TO BE 20%
Think you have to sell an arm and a leg to buy a home? Not at all! An FHA loan only requires 3.5% while a conventional only requires 5%. There are a lot of programs that can potentially help you with down payment assistance or be 0% down mortgage. USDA and VA loans are the most popular 0% down programs. If you qualify, this can take a big chunk off the amount of cash you have to bring to the closing table.
5. DOWN PAYMENTS ARE THE ONLY UPFRONT COST
This is one of the biggest misconceptions. There is a lot of cost that goes into buying a home, and that includes upfront costs. One of the mandatory ones are a termite and appraisal. If you are getting a mortgage, the home will have to appraise and get a letter stating there are no termites in the home. Termite can range between $25-$75 dollars. An appraisal can range from $300-$700 dollars. Aside from your down payment, you then have to pay for closing costs. And NO, they are not the same thing. Closing costs can range anywhere between 3-6% of the purchase price. In certain markets, this can be negotiated for sellers to cover by rolling into the offer price, but whether that decision is smart to do or not when it comes to landing your dream home will need to be discussed with your agent.
Now that you have some knowledge to get the process started, get in touch with an agent who will help you get through the process as smoothly as possible.
Author:Phaedrea Watkins Phone: 919-667-3791 Dated: January 2nd 2018 Views: 118 About Phaedrea: Phaedrea is a licensed Real Estate Broker/Realtor® in the state of North Carolina. She is a graduat...
View our latest blog posts in your RSS reader. Click here to access.
Cutler Realty Group with Fathom Realty if a Real Estate Team that has been assisting buyers and sellers with their residential real estate needs since 2006. Over the past decade the team has grown from the founder, Krista Cutler, in one market to several agents servicing both the Raleigh / Durham (Triangle) and Charlotte areas of North Carolina. The Team's foundation was built on putting the clients' needs first and educating them throughout the home buying and selling process. The Triangle Team Leader and long-time Broker, Matthew Wertz, continues to instill this philosophy in all team members. Cutler Realty Group has agents that specialize in all areas of residential real estate sales including first-time home buyers, expanding families, luxury homes, new construction, investors looking for rentals or flips, foreclosures, short sales, single family homes, condos, townhomes as well as listing specialists to get your home sold quickly and for top dollar. Take the first step towards your new home, call Cutler Realty Group today!
Are you ready to get the holiday season started? If so there are
"Over the past 3 years I have purchased 3 investment properties with Krista Cutler as my agent. Each purchase was somewhat complicated because of the types of sale and we are in different states. With each transaction Krista kept me well informed of its progress and always promptly returned my phone calls; I never felt like I was in the dark. Given that Krista is in North Carolina and I am in Texas, dealing with the closing process and documents could have been difficult and cumbersome but Krista made it almost effortless with each purchase going off without a hitch. I can appreciate Krista's great work because, over the years, I have experience with 4 other real estate agencies and purchases. None came close to providing the high level of customer service as did Krista for these 3 transactions. I do not hesitate recommending Krista Cutler to anyone needing real estate services."