Home Buying Myths - Oro Valley Homes for Sale
Oro Valley Homes for Sale, Oro Valley Real Estate in Oro Valley Arizona AZ. Search Oro Valley Homes and Real Estate, Oro Valley Realtor Ian Taylor
Home buyers today have access to a wealth of information about the home-buying process before they even begin talking to a real estate agent. With that in mind, here are some home-buying myths you should beware of.
You need a 20% down payment:
Fact: A 20% down payment hasn’t been required to buy a home for decades, if ever.
Your preapproval rate is the rate you’ll get when you close:
Fact: Interest rates adjust daily. The rate you’re quoted in a preapproval is based on current market conditions as well as factors like your loan amount, credit score, property type and where the home is located. In general, your actual rate can’t be “locked in” until you find a home and sign a purchase contract with the seller.
You should wait to buy a home until prices are lower:
Fact: Buying a home after a big run up in prices may seem risky, but waiting carries some big risks as well.
Buying a home is always cheaper and a better investment than renting:
Fact: Renting a home can sometimes be cheaper than buying, and home prices don’t always go up and up in a neat, straight line.
You have to find a home before you apply for a home loan:
Fact: Getting prequalified for a loan before you shop for a home is not only okay, it’s also smart.
Buying a fixer-upper will save you money:
Fact: True “fixer-uppers” need a lot more than a fresh coat of paint. These homes generally have major problems that may not be visible. Even a skilled home inspector can’t see inside walls.
You have to get your loan from the lender who preapproves you:
Fact: A preapproval is a great starting point for getting a mortgage loan, but you’re not obligated to stay with that lender. You can shop around for a lender that makes a competitive offer and is a good fit for you.
You shouldn’t buy until you can afford your ‘forever’ home:
Fact: Selling a home can be costly, but if you wait to buy until you can afford your “forever” home rather than buy a lower-cost “starter” home, you may never buy at all.
A 30-year, fixed-rate mortgage is always the best choice:
Fact: Depending on rate movements, adjustable-rate mortgages (ARMs) can save thousands of dollars of interest over the life of the loan compared with a fixed rate. ARMs have an initial fixed rate period, and then can adjust up or down, resulting in monthly payments that can change over time.
You can’t buy a home if you have student loans:
Fact: Student loans can both help and hurt your chances of buying a home.
You have to pay the seller’s asking price to buy a home:
Fact: The seller’s asking price is the amount the seller hopes you’ll pay, but it’s not necessarily the price you’ll actually pay.
You need excellent credit to buy a home:
Fact: Good home loans and attractive rates are available for people with less-than-perfect credit as well as those with excellent credit.
Fall and winter are bad times to buy a home:
Fact: Fall and winter can be advantageous times of the year to buy a home.