Common Misconceptions of Home Buyers
Filed under: Temecula Real Estate
It is an exciting time to buy a new home, but many people tend to get caught in common misconceptions about how it will work. Instead of getting stuck with these myths, it is essential that you have a trusted real estate agent by your side to guide you through the process.
These are some of the most common misconceptions that I see in home buyers:
1. I Only Need to Save for a Down Payment
Not only will you need to have a down payment, but you also need to have money available to pay for the closing costs of the transaction. For example, if you are using an FHA loan then you will have a minimum of a 3% down payment, plus you will have closing costs that include title, escrow, and other loan fees.
The misconception that is commonly made is that the down payment and closing costs fit into the same category. But, they are different requirements, so you need to be sure that you have money set aside for the closing costs in addition to the down payment. Both of these payments are due upfront when you buy the home.
2. I Have to Save Up for the Full Down Payment before Buying a Home
Many homeowners think that it will take a long time to qualify to buy a home because they won’t be able to save up for the full down payment. If you don’t have the full amount for the down payment, then you might consider using a down payment assistance program.
With an assistance program, you might be able to get help paying for the 3% down payment. But, it will still be necessary for you to come up with the money for the closing costs. Talk to your loan officer and real estate agent if you need help covering the closing costs. There might be some creative financing options that can be used or it might be possible to have the seller pay for those costs.
3. The Neighborhood Doesn’t Matter as Long as I Find the Right Home
Even if you love the home, it won’t be a great experience if you don’t choose the right neighborhood. Do your research to learn more about the neighborhood before you make an offer on a property. Look at information about schools, crime rate, and other important details that will affect your family.
Do you need help buying your first home in Temecula? Call, text, or email me anytime and I will gladly help you find the home of your dreams: (951) 473-0390 or [email protected]