Buying a home is a major investment, but there are many misconceptions surrounding the process.
Hi, today I’m going to talk about 4 uncommon myths homebuyers need to know. So let’s debunk these myths and find out if purchasing a home is right for you. Stick around for my next video to discuss the pros and cons of renting versus buying.
Myth Number 1
It’s cheaper to rent vs buy- buying can help you build equity and grow your net worth. In the short term, renting can seem less expensive. Your deposit is typically cheaper than your down payment. however, if you are planning to stay in an area for more than 5 to 7 years buying far outweighs renting. I will talk more about this in another video.
Myth Number 2
you must pay off all of your debts, student loans car loan etc in order to purchase a home. Nope! this simply is not true, loans are based upon your debt ratio you have to look at your total debt versus your total assets. A good rule of thumb is having a debt to income ratio of 36% or less.. speaking with a lender will give you a more comprehensive understanding of this process.
Myth Number 3
If I put an offer in on a house and get accepted I’m guaranteed to be a homeowner. Sorry, not sorry. This is wrong and it could be a good thing. Once your offer is accepted, there is still a lot to do. Most buyers have contingencies in place to protect each party throughout the real estate transaction. These contingencies are typically home inspections, title & lien checks. Appraisals and loan approval.
Myth Number 4
find a for sale by the owner to save you money. Sadly, this is a myth if you do not have representation in the purchase of a real estate transaction, there is little protection for both buyer and seller, less negotiation, and the potential risk emotions run deep and end up leading the transaction. Both buyer and seller can feel uncomfortable taken advantage of, and ultimately unhappy with the purchase of the home. Having each party represented will alleviate these issues.
Homeownership is what many deem the American dream, understanding the process and debunking myths is a critical step in the right direction. Homeownership is not for everyone. There is nothing wrong with waiting to own a home, but there is lot wrong with rushing in with little to no
understanding to pursue homeownership. If you found this video helpful, please check out my other videos on homeownership. I will discuss the pros and cons of renting versus buying in detail. If you are interested in knowing the step-by-step process to purchase a home please check out my website to download a complimentary copy of my home buyers guide. Thank you for reading. I’m Lacey Deverick with laceydeverickldhomes powered by Windermere. Located in San Jose California.