When you are getting ready to buy a house, you will hear a lot of things and be given a lot of advice. However, you want to make sure that you are following the proper advice and not believing the myths that can steer you in the wrong direction. Here are a few of the more popular myths you want to be sure you don't fall for:
Myth 1: Start the buying process by looking for a house – Some people are under the misconception that the home buying process should start by looking for a house and then getting an agent, getting a loan and then making an offer. However, this is at least partially backwards from the way you should actually be doing things once you decide to buy. You want to get pre-approved for a loan first so you know exactly where you stand and so sellers will know you are serious. After getting pre-approved you can get yourself a real estate agent who will help you find the perfect house. Once you find the right property, then you can make an offer on it through your agent.
Myth 2: You need to have a big down payment – A lot of people also think that you have to prepare to buy a home by saving for a big down payment. While having a big down payment can help in certain circumstances and is even required for specific loans, there are still plenty of ways to purchase a home without a big down and sometimes without any down payment at all. In fact, there are even programs that can assist people with getting loans that require a down payment by helping them out with it.
Myth 3: You need to have excellent credit to qualify for a loan – Many people think that you need an excellent credit score before you can even think of buying a home. A great credit score is definitely best because it does help to open more doors and give you more options to choose from, but it is not always necessary. There are a lot of different loans and loan programs out there and they will have their own requirements with regards to what your credit score needs to be. There are also some ways you can go about working around less-than-stellar credit by proving yourself more credit-worthy through other methods.
Myth 4: You need to offer the asking price – A first-time buyer may think that the asking price is the minimum price you need to offer in order for you to buy a house. However, the asking price is just that, the price being asked. However, you can always offer less, or even more, if you feel you should and the seller has the right to accept any offer they feel works for them.