Whether you are a first time home buyer or if you have purchased a couple homes in your lifetime, there are several myths and misconceptions that you may believe which can affect your purchase. And when it comes to real estate, knowing the difference between myth and reality can mean the difference of thousands of dollars and peace of mind as a buyer. If you want to avoid mistakes that are caused by misinformation, here are some common misconceptions that you should know about.
1. Eventually, the perfect home will fall into my lap if I wait long enough.
When it comes to buying real estate, it is virtually impossible to find the “perfect” home. That’s because the perfect home simply does not exist. Even homes that are brand new have things wrong with them that you may need to fix. It’s much better and more productive to look for a “perfectly acceptable” home that you will thoroughly enjoy living in for many years.
2. I should not limit myself to one real estate agent. I should have several working for me.
Some home buyers think that it is better to have several agents working on their behalf. While this might seem like the best idea, it is actually counterproductive. For one thing, all real estate agents have the same database that they are working from. So if you have several realtors working for you, you may end up looking at the same homes which wastes your time and theirs. Also, many agents insist that you sign an exclusivity agreement stating that you will only work with them. If an agent does not ask you to sign such an agreement, there is a good chance that they are just starting out and they may not have any other clients that they are working for at the time.
3. I do not need to read all of the fine print on the home buying contract.
Whether you are buying or selling a home, the process is very involved and there is a large sum of money at stake. As such, it is important that everything is spelled out in writing, including closing costs and other information that both parties should know. Also, home buying and selling practices change from time to time so it’s important that all parties know the agreements that they are entering into to avoid major misunderstandings which can lead to lawsuits and added expenses. Always read the fine print before signing a contract or you could be setting yourself up for major problems.
4. It is nearly impossible to qualify for a mortgage these days. I should not even try.
While there was a time in recent years when it may have been next to impossible to qualify for a mortgage, the regulations are starting to loosen and banks are starting to offer mortgages to buyers who have less than perfect credit. There are also several programs available to help buyers who do not have great credit and the buyers with great credit will have more options, but it’s always worth a try. Take a few months to clean up your credit report as much as possible and apply for a mortgage. The worst that can happen is that you get turned down.
Being an educated home buyer is essential in today’s market. Do your homework and research and you can be an informed buyer.