Share:

Buying a house is an exciting life milestone for many people, but it’s also a complex process subject to a lot of common myths and misconceptions. Unfortunately, many of these misunderstandings can add thousands of dollars to the price of your home, or even scare you away from the real estate market entirely. Below are a few common myths you might have heard about buying a house.

3 Common Home-Buying Misconceptions

1. You Must Have a 20% Down Payment

While many private lenders prefer borrowers to put at least 20% down, there are options for first-time buyers with more limited resources. For instance, the FHA offers guaranteed loans for first-time homeowners with down payments as low as 3.5%.

Some lenders also offer loans with mortgage insurance, which allows you to buy a home with a smaller down payment. When you’ve built up a certain amount of equity, you can cancel the insurance and lower your monthly housing expenses.

2. Buying a House Is Expensive

real estateWhile homeownership is a substantial up-front investment, it carries some amazing long-term benefits. Because real estate can appreciate rapidly, you may have substantial equity built up after just a few years. However, renters don’t enjoy any benefit of paying rent every month, no matter how long they’ve lived in the same property.

Rent has also been rising for years, and in many areas are much higher than the average mortgage payment. Depending on your local market, buying a home can be much cheaper than renting, even after factoring in the costs of insurance, taxes, maintenance, and repairs.

3. You Should Avoid Homes That Need Repairs

Many home buyers are looking for houses that don’t need any major renovations. However, if you’re looking for your first home, a property that needs some improvements can actually be an amazing investment.

Not only are fixer-uppers more cost-effective than similar properties, but every improvement you make also adds to the property value and increases the asking price when you’re ready to sell. However, just be sure you can handle the repairs before making an offer on a less-than-perfect home.

 

If you’re looking for your first home, trust the highly trained team of real estate experts at EXIT Realty Nexus to help find the property you’ve been dreaming of. From their office in Coon Rapids, MN, they proudly offer excellent service to clients throughout Anoka County. They know how to take the stress out of buying your first home. Visit their website to browse their listings or call (763) 548-1400 to start your house hunting adventure today.

tracking