6 Real Estate Myths Debunked

Real Estate is a common household subject. However, there are many myths surrounding real estate that could hinder potential homeowners from starting the buying process. We’ve debunked the top 7 real estate myths so you can shut down any misconceptions and make the most informed decision when weighing your options.

1. MYTH: Your Down Payment Needs To Be At Least 20%

   FACT: You do NOT need 20% down. In fact, the average down payment is currently 6%.

   Your down payment should depend on your current savings. You should also consider what goals you have for your home-buying journey. Our preferred lender will go over any eligible down payment assistance programs with you and help you determine your optimal down payment amount.

    

2. MYTH: You Must Pay Off Your Student Loans to Get Pre-Approval

   FACT: Student loans by themselves cannot prevent you from getting a mortgage.

   Instead, our preferred lender will look at your debt-to-income ratio before offering a mortgage. A 2018 Student Loan Hero survey found 43% of U.S. graduates were postponing purchasing their first home due to student debt. However, if you feel you can afford a mortgage as well as your current debt, you just need to find a lender that agrees with you.

    

3. MYTH: You Don’t Need an Inspection

   FACT: Home inspections identify the need for major repairs or construction oversights which can minimize surprises and save on costly repairs

   Home inspectors look for more than 1,600 specific items in the home, helping you avoid tricks that hide a home’s flaws. While waiving the inspection may save you hundreds on the cost of the inspection itself, it could also costs you potentially thousands in repairs found after closing. For this reason, our team recommends always getting an inspection.

    

4. MYTH: You Must Sell Your Current Home Before You Can Buy a New Home

   FACT: There are various ways a seller can buy a home before selling their current home

   Our preferred lender can work with you to determine if you’re eligible to keep your current home as a vacation home or rental property while also buying a new home. If sellers are just looking to have more control while reducing risk and uncertainty, Sellin’ With CC and our partner offer a Trade-In program so homeowners can buy before they sell! You can learn more about our trade-in program, here.

    

5. MYTH: I Need a Perfect Credit Score to Get Pre-Approved

   FACT: There are many different programs available for potential home buyers with credit scores as low as 580.

   Our preferred lender will assign you a loan officer to help you get your initial paperwork together, understand your financing options, and set realistic expectations for the home-buying process. Your Loan Officer will review all loan options that you may qualify for and can work with you on how to improve the scores, if needed.

    

6. MYTH: Buying a Home is Complicated

   FACT: Working with a knowledgable, experienced Realtor takes the stress off the buyer and puts the joy back in the home-buying process

   Our team has partnered with amazing professionals to make sure you keep more money in your pocket. We've helped over 1,500 families move and we hope you feel like number 1. Our commitment is that we will work hard, negotiate hard, communicate often, and be there for you through every step of the home-buying process. Our goal is that when we do this we will have made the home-buying process an enjoyable experience, earning your trust and at least one referral from you.