Home buying Myths: Misconceptions of the Home Buying Process

1.       You Need a Perfect or Near Perfect Credit Score to Buy a House

Mmmm, not exactly. By all means, cultivate a good credit score, it can only make this process if not your entire life easier. However, your credit score does NOT need to be perfect! The function of your credit score in the home buying process, according to Fannie Mae, The Federal National Mortgage Association, "knowing your score lets you know what type of mortgage you might qualify for." Meaning that your credit score is directly attached to your mortgage and the types of mortgage you can get.

2.       You Need 20% for Your Down Payment

Not even close to being true. According to Fannie Mae, you can put down as little as 3% depending on your credit score and the state you live in. Here's the thing, if you put down more money then you will end up paying smaller monthly payments, you will likely pay less in interest over time as well. It is all up to your finances. What do you gain by putting 20% down? Do you need some of that money for moving costs? Updates to the new home?  Furniture? Repairs? Other fees crop up when you are buying a house, not just the down payment and the closing cost. Part of deciding on your down payment is determining how much you can pay out of pocket in this process.

3.       The List Price is Final

Wrong. The list price is a starting suggestion; the asking price is just the approximate amount that the seller is hoping to get for the home. However, buying a home is like entering an open bidding process. There are many factors that might affect the amount you should pay for a house. You could end up paying more or less than the original listed price. Be ready and willing to negotiate, this is where a  REALTOR ® is beneficial. 

4.       Buying a Home is a Good Investment

Eh, Maybe. It is indeed an investment. You put more time and money into a house than you will in almost anything else. However, like all other investments, it comes with risks and a fair amount of uncertainty. Many different and sometimes unpredictable factors go into whether or not a home will end up being a good investment. Like any other kind of investment, you invest because you believe in the provided opportunity could pay off. At least with homes, unlike other types of investments, it offers actual, physical shelter and can provide you with a sense of comfort and the potential of shared love and good memories of a life built inside of its walls.

5.       You Have the Internet, You Can do This on Your Own

I'm not going to tell you that you can't, we are living in the information age. It is definitely within your ability to buy a house on your own, but do you want to? How much will taking on this process by yourself undercut your own best interest? REALTORS ® have tools, infrastructures, and insight at their disposal that you can't just acquire without being a REALTOR ®. Even in the age of information, there are still some things out of reach. All of that comes before the connections that a REALTOR ® has at their disposal that you would be missing out on that could make the home buying process infinitely more manageable for you.  Who's going to do your inspection? Someone may have told you that you could skip that step, but you really can't without taking even more risk onto yourself. Why not let someone who knows the ins and outs of the process make a grueling process as painless as possible.

Just remember that deciding to buy a home is a big decision that triggers an entire series of significant, important decisions that have to be made. Be prepared, do your research. Hire a REALTOR ® someone knows real-estate and can help guide you through the minutia of home buying process so that you can make the best decisions for yourself and your situation.

Delana Cotton is a REALTOR ® and servers the northeast Atlanta region that includes Dacula, Winder, Lawrenceville, Buford, Snellville, Conyers and surrounding areas. Delana treats every transaction as if she were you, the buyer or seller. If you have a real estate transaction on the horizon, meet Delana for a no pressure chat over coffee. For more information visit GreaterAtlantaAreaHomesForSale.Com