Screen shot 2013-12-26 at 12.49.48 PMReal estate rules have recently undergone a monumental shift. The process of buying and selling a house doesn’t look anything like it used to be 20 or even 10 years ago. If you decided to sell or buy a house, it can make sense to check with the professional broker who knows all the pitfalls and peculiarities and who can help you save a lot of money when you start house hunting.
We defined five of the most common real estate myths that can mislead you and your family.
Myth 1: you have to seek help of a real estate agent.
Buying or selling a house is not an easy thing to do. It requires a lot of time, knowledge and determination. Many of us consider selling or buying a house is one of the most important financial decisions, that is why it is so nice to have someone who can give us advice and guide us through this complicated process.
But if you think that it is absolutely impossible to buy or sell a house on your own and save on sales commissions, you are not fully right. Yes, this process is difficult, yes, it takes a lot of time and research, but modern world offers a lot of opportunities for DIY amateurs. Additionally, websites, such as Zillow and Redfin, provide numerous properties that you can look at before contacting the real estate agent and going through the multi-listing services.
Myth 2: buying is always cheaper than renting.
One of the reasons why people buy a house today is that they don’t want to rent anymore and pay someone’s mortgage. The common myth is that it is cheaper to buy than to rent. However, there are a number of hidden costs that you as a first-time buyer may not know. They include all the monthly payments on mortgage, various taxes, gas, water and electricity. Also if you decide one day to move to another place or a smaller apartment, you as a renter can easily do it. Rent gives you a lot of flexibility you as a home-owner can lose.
Myth 3: this house is one-of-the-kind.
Once you find a house of your dream, you may tend to think that you will never find another one you ever like as much as this special one. But it is not true: there will always be another property as good as or even better than the current one. If there is something wrong with the house, or it just doesn’t feel right to but it or it is simply a bit overpriced, take a break and check 10 more houses.
Myth 4: my credit history has to be perfect.
One other myth that prevails today is the necessity in perfect credit. With all the recent loan restrictions, many people think that they have to have a stellar credit in order to get a loan. In reality, lenders are willing to work with home-buyers whose credit is less-than-perfect. If you have any concerns about your credit, just make sure you work on your credit scores before applying for a mortgage application.
Myth 5: the minimum down payment has to be 20%.
Modern mortgages can come with little or no down payment. Traditional 20% is not a must anymore. If you have a job and a stable income, but can’t or don’t want to fund a large down payment, you still can get a mortgage without any problems.