There tends to be common misconceptions in Real Estate transactions, either as a first time buyer, or looking for an investment property. It is very important to understand that the buying process can be stressful, but if you’re well informed of what is really happening in the market and are being guided by the right people, this process becomes much easier.
One of the most popular myths is that you don’t need a Realtor! But why is this even a question? Realtors know the ins and outs of the area and surrounding areas, as well as these Real Estate professionals are specialized in knowing the market and providing you with the best customer service whether you are looking to buy or sell.
Buyer’s most common mistake is the immediate reaction to put as much cash down as they can when buying a new home because they will have to borrow less, have a smaller mortgage, and insurance payment. However, putting a big down payment is not a requirement and is not always the right thing to do. You can sometimes put as little as 5% down depending on the bank, but this will likely give you more flexibility to spend on home care, improvements, or other circumstances.
Assuming that you have to have the most perfect credit in order to get a loan isn’t always the case. Some buyers have less than perfect credit and lenders are often more willing to work with these people to help them find the best possible situation. Credit is not the only thing that can lenders look at when approving a loan, but your score may affect the interest rate on your mortgage. Always be aware of your credit and your credit score, and always double check your credit before applying for a mortgage.
For further information about Home Buying Myths, click the attached link below. If you have any more questions please don’t hesitate to contact one of our team members at River City Realty 250-374-1925.