Flash news: not all that you hear about buying a home is true. Sure, your Aunt Sally has bought properties and moved so many times in the last two years, but beware of the things she tells you about home buying over the dinner table. Beware of the things you see online, too. You might be stepping on some misconceptions. If you want to do this big life event right, watch out for these myths:
You should have a high credit score.
Your credit history is one of those important stuff lenders are going to scrutinize. A bad one isn’t going to give that much borrowing power, so there’s no way you can buy a property with it, right? False. You can still buy a home even with bad credit. Of course, expect a bigger hurdle along the way than those who have excellent scores. All the same, there are tactics to go about this. For one, you can consider applying for FHA loans, as these come with lower credit requirements. Bigger down payment will also boost the likelihood of being approved. The lender would think that you’re less likely to abandon payment obligations when you’ve cashed in a lot of money right from the start. Of course, an excellent sit-down discussion with the lender can also help. If you explain the rationale behind your bad credit history and show them that your debt-to-income ratio is good, they might see through it. So talk to officers in mortgage companies in Utah. Don’t let the bad credit weigh you down.
It’s better to buy a fixer-upper.
Because of renovation reality shows, this has been the prevailing view when it comes to buying homes. If you look at it from a distance, fixer-uppers do seem to make financial sense. Plus, they give people a free-hand in building dream homes. The thing is, this doesn’t happen all the time. Remodeling projects can be very unpredictable when it comes to budget. In the middle of the project, you’ll stumble upon something that you didn’t originally plan for. Also, if you’re not the handyman-type, the entire thing will be just a tiring, stress-filled endeavor, which you probably will give up on in the first months. That said, if you have a pretty strict budget and you know you can’t deal with the chaos of construction projects, stick to the move-in ready. Buying a home successfully lies not in joining a bandwagon. It’s in being straight-up honest about your budget and capabilities.
Don’t settle for the good-enough homes.
This is perhaps the biggest myth in buying houses. You’re already making a big investment, of which you’ll have to stay in for the next five to 10 years, so might as well get the best in the market, right? Don’t settle, right? No, not really. The reality is, compromise is a vital part of buying a home. You won’t find the house that will tick off all that’s in your needs and wants checklist. You’ll be wasting your time searching for it. If you do magically find that one, your budget may not make it. So either way, compromise is the key. Good-enough homes are the ones you should look for. They may not be grand or HGTV-like, but they suit you just right.
Ready to Buy a Home?
Knowing the realities of buying a house is key to being a smart home buyer. So watch out for these myths as you go through the process. Filter and verify the information you hear and read. Consult the experts.