Home buying often paired with stress and apprehension. To add to home buyers uncertainty, a lot of bad information and advice are available to home buyers from the internet, family members, friends and colleagues. Find out the most common misconceptions first time homebuyers have when looking to get financed for a new home. This is a continuation of the first blog I made for this topic. Read it at: https://danielines.wordpress.com/2016/01/05/the-top-misconceptions-of-buyers/
I ONLY NEED DOWNPAYMENT TO BUY A HOME
There's still a lot of home buyers who thought that after making sure that their loan is approved, they only need down payment money to buy a home. This is incorrect as there are other costs associated with home buying. Some of these home buying costs includes:
• …show more content…
Don't believe the common misconception that the only money you need to buy a home is the down payment. Read more: The Hidden Costs of Buying a Home
I NEED TO FIND A HOUSE FIRST BEFORE TALKING TO A BANK OR MORTGAGE COMPANY
This is one of the biggest misconception in home buying that exists until today. It is advisable for you to discuss your financing options and get a mortgage pre-approval before you do your home shopping. Why is that?
• YOU NEED IT IN MAKING A PURCHASE OFFER - Seller requires proof that you are financially stable prior to accepting your purchase offer. Most sellers prefer buyers who already secured a pre-approval letter from their respective lenders especially if your real estate market is a sellers market. You will face a lot of competition when you buy a home in a sellers market and not having a pre-approval letter means a huge disadvantage and is a great way to lose your dream house.
• You need to understand the costs associated in home buying.
• You need to know where to look for homes that are within your comfortable budget.
• To make sure you get the best mortgage interest
I ONLY NEED DOWNPAYMENT TO BUY A HOME
There's still a lot of home buyers who thought that after making sure that their loan is approved, they only need down payment money to buy a home. This is incorrect as there are other costs associated with home buying. Some of these home buying costs includes:
• …show more content…
Don't believe the common misconception that the only money you need to buy a home is the down payment. Read more: The Hidden Costs of Buying a Home
I NEED TO FIND A HOUSE FIRST BEFORE TALKING TO A BANK OR MORTGAGE COMPANY
This is one of the biggest misconception in home buying that exists until today. It is advisable for you to discuss your financing options and get a mortgage pre-approval before you do your home shopping. Why is that?
• YOU NEED IT IN MAKING A PURCHASE OFFER - Seller requires proof that you are financially stable prior to accepting your purchase offer. Most sellers prefer buyers who already secured a pre-approval letter from their respective lenders especially if your real estate market is a sellers market. You will face a lot of competition when you buy a home in a sellers market and not having a pre-approval letter means a huge disadvantage and is a great way to lose your dream house.
• You need to understand the costs associated in home buying.
• You need to know where to look for homes that are within your comfortable budget.
• To make sure you get the best mortgage interest