There are so many real estate rumors when it comes to buying real estate that can cost you a home. From your downpayment amount to quick judgments, here are the top five rumors to take with a grain of salt.
YOU NEED 20% FOR A DOWN PAYMENT
Everyone always says you need at least 20% in down payment to close on a house. While having more money to put down will benefit you, it is certainly not a necessity. According to www.car.org, the reality is 60% of buyers put down 6% or less.
Don't get us wrong, putting at least 20% can help with avoiding mortgage insurance payments. However, with the varying loans designed to help people who can't afford 20%, it is worth looking into your options with a lender.
THE HOME HAS TO CHECK OFF EVERYTHING
Just because the home you can afford doesn't check off everything on your (maybe long) list of "needs", doesn't mean it isn't the home for you. Truly think about your needs vs your wants and write them down on a piece of paper. While this list is a good starting point, you might have to compromise depending on budget and inventory.
YOU SHOULD BUY CHEAPER/UNDER YOUR BUDGET
A home that is under budget might seem nice right off the bat, however, this can be tricky. Costs for renovations, even if you are doing it yourself add up quickly, permits get denied or take a long time and you might find you're spending more than your original budget, easily.
ONLINE HOME ESTIMATES ARE ACCURATE
This is something we are passionate about at Dwell Well. We know for a fact the price estimate generators online are more than likely giving you an inaccurate number.
It is important (vital, actually,) to get an accurate estimate using our Real Human Pricing.
A FEW GRAND IS WORTH FIGHTING OVER
If you and the seller cannot agree on a price, and the difference is a few thousand dollars, take a step back and think. This will allow you to realize that a few extra dollars is or isn't worth getting the home. Contemplate whether or not losing the home is worth a few extra dollars a month on your mortgage.
All of the tips help buyers concentrate on the reality of buying a home. There are a lot of rumors floating around, but when it comes to the facts, your Dwell Well agent knows what's real, and what you can ignore.
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