Buying a home is among the most important purchases that you will ever make, but there are a lot of fairly common misconceptions that individuals often believe when they are going through the process of buying their first home. To help you make the best choices possible for your home-buying needs, you will want to be mindful of the following three commonly believed myths and the truths behind them.
Myth: There Is No Way To Avoid Having To Pay A 20-Percent Down Payment
In order to make this purchase, you will likely need to use financing. However, many first-time homebuyers may make the mistake of assuming that it is always required to make a very large down payment in order to buy a house. Luckily, there are numerous state, local, and federal programs that are designed to help first-time buyers secure low- or no-down-payment mortgages. While make a large down payment is usually the cheaper option for buying a house, these programs can be essential for those that would otherwise find it impossible to save enough for the down payment.
Myth: Homeowners' Associations Do Not Have Real Enforcement Powers
When evaluating potential properties, it is routine for first-time homeowners to severely underestimate the enforcement powers that these organizations have over the member properties. For example, it is possible for these groups to issue expensive fines for violating the code of conduct. Failing to pay these fines may eventually result in a lien being placed on the home. Due to these threats, you should closely examine the homeowners' association bylaws for any potential property to make sure there are not restrictions that would prevent you from using your new home in the ways that you want.
Myth: It Is Expensive For A Buyer To Hire A Real Estate Agent
One of the best ways to ensure that your home-buying experience goes as smoothly as possible is to work with an experienced real estate agent. Sadly, many new homebuyers will assume that working with an agent will substantially increase the cost of making this purchase. Due to this misconception, they may attempt to go through this process without professional representation, which can greatly complicate the process and possibly contribute to paying a higher final price. However, the home seller is generally responsible for paying the commission of the real estate agents for both sides of the transaction. As a result, you will not need to worry about these expenses coming directly out of your own pocket.
If you're looking to buy a home, contact a real estate agent to look at new residential developments in your area.
Share5 October 2016
Once I paid of the mortgage on my house, I decided I wanted to buy an investment property. I had no idea that the buying process would be different, but it really was. There were so many things to consider that I hadn't thought about, and even the loan application process was different. It occurred to me that if I didn't know about it, others likely didn't either. I built this site to help others see what I went through buying my first investment home. I hope that it helps you to approach the process with more confidence and understanding.
