Purchasing a house can be daunting for first-time homebuyers who are worried about the potential undersides. However, sometimes homebuyers can get a little too cautious to the point where they trust every myth they hear about home buying. It’s important to distinguish between actual information with some of the myths about home buying before closing on a home.
Many homebuyers to this day still believe that they need to save up 20% to make a down payment so they can purchase a home. While this might have been true for older generations, purchasing a home can be as flexible as possible now through various options. One of these options is down payment assistance in which national, state-wide, and local agencies offer home buyers grants and loans that help cover the cost of a downpayment. Additionally, homebuyers can look into mortgage insurance in which homebuyers are covered for a down payment by paying a smaller amount regularly. Understanding the flexibility homebuyers have now with down payments is important in purchasing a house today.
Ignoring the myth of hunting during Springtime is another way homebuyers can come out on top. More often than not, homebuyers have routinely chosen to purchase during Springtime based on previous knowledge of available inventory and pricing in the housing industry. However, the real estate industry has changed, making Spring more competitive. Homebuyers can expect to have a better chance of getting extra time to consider a purchase in the Fall before someone snags a counter-offer. Along with getting more time to look at a house, home sellers in the Fall and Winter months are typically more desperate to sell faster. This means that homebuyers have the chance to quickly scoop up a home without having to wait as long for additional offers to come in.
Young homebuyers may feel like they are going to have a difficult time purchasing a house due to their credit score, whether it’s because they have never had a credit card before or have run into trouble in the past. Home sellers are known for being flexible in requiring simply a moderately ok credit score, but buyers can get away with even less depending on how much of a down payment they have ready to give. For homebuyers who don’t even meet that threshold, credit scores can often be quickly raised by adding on credit cards and taking on a small amount of debt that is paid off every month. Anyone taking this advice can see that building a credit score is crucial but not the point some make it out to be.