The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Information on this website may not be current. This website may contain links to other third-party websites. Such links are only for the convenience of the reader, user or browser; we do not recommend or endorse the contents of any third-party sites. Readers of this website should contact their attorney, accountant or credit counselor to obtain advice with respect to their particular situation. No reader, user, or browser of this site should act or not act on the basis of information on this site. Always seek personal legal, financial or credit advice for your relevant jurisdiction. Only your individual attorney or advisor can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, contributors, contributing firms, or their respective employers.
Credit.com receives compensation for the financial products and services advertised on this site if our users apply for and sign up for any of them. Compensation is not a factor in the substantive evaluation of any product.
If you’re considering buying or selling a home, you may have asked co-workers, friends and family for advice. But you might want to check with the professionals, because the rules of the real estate game are different today than they were 20 or even 10 years ago. Due to this monumental shift, there are lots of misconceptions about buying a home that could cost you big when it comes time to go house hunting.
Here are five of the most common real estate myths.
If you’re thinking about buying or selling a house without a real estate agent to save on commissions, it’s important to understand the full impact of that decision. Buying and selling is a lot of work and there’s a reason real estate agents still exist and are involved in almost all transactions. For most of us, the sale of a house represents one of the biggest financial transactions we’ll ever make. It’s nice to have someone there guiding you along the way.
But while having an agent can be a good thing, doing it on your own is not as unimaginable as it once was. Sites like Redfin and Zillow have virtually eliminated the need for the multiple listing service and many homebuyers are finding properties for themselves before contacting a real estate agent. If you’re the do-it-yourself type you might just be able to buy or sell a home on your own in today’s market.
One reason people give for not wanting to rent is: “I don’t want to pay someone else’s mortgage.” However, there are hidden costs that go into owning a home.
The nice thing about renting is that you can always uproot and leave for a nicer place for a year or two. Or maybe you lose your job and need to downgrade for a few months before you get on your feet again. Once you buy a house, there’s a lot less flexibility. Just the fees involved in buying and selling a house will make a major dent into your savings if you sell too soon after buying.
Once you’ve finally found that perfect house, the inclination is to think you won’t find another that you like nearly as much. There will always be another property. If something doesn’t feel right or the price is too high, don’t be afraid to wait for the next one. As long as you have realistic goals, no house will ever be truly one of a kind.
With the recent housing bubble came a wave of lending restrictions and loan tightening. Most people assume that they have to have stellar credit to get a loan these days, but that’s not always the case. Lenders are often willing to work with buyers who have less-than-perfect credit.
If you’re concerned about your credit, you may want to work on your credit score before you buy; people with higher credit scores are offered the lowest interest rates on mortgages.
Twenty percent used to be the magic number when it came to down payments, but it’s certainly not the only option. It’s possible to get a mortgage now with little or no money down. If you have a stable income but are unwilling or unable to fund a large down payment, you may still be able to buy a home.
More on Mortgages and Home Buying:
Image: F1online
December 13, 2023
Mortgages