Myths About Buying a Home

5 MYTHS ABOUT BUYING A HOME

There are many real estate myths about buying a home.  Whether you are a first time home buyer or seasoned investor, it’s important to distinguish between fact and myth.  Knowing the difference between the two can save you thousands and peace of mind.  Here are 5 myths about the home buying process to help you on your way to home ownership.

Myth #1: You’ll Find the Perfect Home

As a first-time home buyer, you may get caught up in the excitement of buying.  But you need to remember that just because you have a vision of your dream home that doesn’t mean you’ll find it.  Not every home is going to meet your expectations.  Most homes will have a flaw or two, and sometimes many more.  It’s important to look at the big picture and not obsess over finding the dream home.  If you find a house that meets most of your needs and wants, then you’ve done a pretty good job in finding the right house for you.

Myth #2: You Should Buy a Home You Can Grow Into

Many first-time home buyers may have heard this before – look for a home you can grow into.  Not so, especially if you consider that most first-time home buyers spend less than 5 years in their first home.  You need to think about where you plan on being in the next few years, but many things in life are unexpected.  You may need to relocate for a job or school.  You may decide you like another area.  You just never know what circumstances will change in the future.  Do you really want to buy the 5 bedroom home so that you can accommodate all the future kids you plan on having?  Look at your current needs and any short-term goals you have and go from there.  Buy a home that suits you for today and that is affordable.

Myth #3: The Best Deals are Distressed Properties Like Foreclosures

In the past five years, we’ve seen an influx of foreclosures and short sales in the real estate market.  Some are offered below market value and some are not.  Some need very little work and some need a complete overhaul.  If you are only focused on finding the lowest price, you will miss out on some great homes.  Figure out what’s important to you in terms of fixing up and affordability.  There are many motivated sellers willing to negotiate with the right buyer.

Myth # 4: You Must Have Perfect Credit to Buy a House

While it’s true that lenders have tightened up lending standards the past few years, you certainly don’t need perfect credit to purchase a home.  The best thing to do is get in touch with a reputable lender to go through your credit report with you.  The sooner you get your credit in order, the better prepared you’ll be when it comes time to start looking for a home.

Myth # 5: You must have at least a 20% down payment.

The traditional down payment of 20% percent is not needed to buy a home.  If you qualify, consider an FHA loan where the down payment is as little as 3.5% down.  A VA loan requires no down payment at all and is available to all eligible veterans.  The important thing to remember is that there are programs out there that can help you purchase a home.

Buying a home is one of the biggest investments you can make.  Our goal at Texas Capital Properties is to help you find the right home, negotiate the best price and navigate the home buying process as smooth as possible.  Our Austin real estate agents represent buyers throughout town looking for new construction, resale homes, distressed properties, and downtown condos.  We are the Austin-area real estate experts to help you find your home today.  Contact 512-587-3732 or visit our website to get started.