Prices continue to rise every year, which can occasionally make people a little hesitant to hop into the real estate world. But did you know that buying a home is easier now than ever? In this blog, I am going to highlight the THREE biggest myths surrounding buying a home!
- Buying a home requires a 20% down payment.
Many people think that when they buy a house, they are required to put at least twenty percent of the purchase price down; that is just not the case! Did you know it is possible to only place a 3.5% down payment and still buy a house? That’s very low! There are loan programs suited for every person’s needs, particularly the needs of first time homebuyers.
- It is cheaper to rent then buy.
Personally, I believe this is the biggest myth when it comes to homebuying! Renting does not build personal wealth. Every year you rent, you are essentially throwing that money away instead of investing it into something you own by building equity. Renting might be cheaper for a year or two, but down the road, you can build up thousands and thousands of dollars. Home values tend to increase yearly, so even without doing any renovations to the home you are still building equity as a result of paying down your mortgage and increasing home valuations. A home is a great investment.
- You can save money by not using a realtor.
This is completely false. Realtors are so crucial to the home buying process that you cannot afford to forgo using a realtor. The buyer does not pay a fee to his or her agent at all, the seller must pay his or her agent a fee, a portion of which is then shared with the buyer’s agent. Essentially, I am working for you for free! I can save you time and navigate you through the buying process! There are so many contracts and procedures involved in a real estate transaction that get very confusing. A realtor will help you through all of the procedures and contracts along the way and will be available to answer any questions that may arise during your home buying journey.
Author: Austin Anderson