Most first-time home buyers tend to seek advice from their family and friends about the process. As a result, a number of home buying myths may have found refuge at the back of their minds.
Here are 4 home buying myths you need to stop believing.
Buying is always better than renting
This actually depends on a number of factors including the price of the home and how long you intend to stay in it.
Generally, it takes 5 to 7 years to break even with the cost of buying, owning and selling a house. So, if you are planning to buy a house, make sure that you intend to stay for at least that long.
A 30-year fixed rate mortgage is always the best choice
Fixed rate mortgages come with a low foreclosure rate, but that doesn’t mean that it’s always the best choice. Mind you, the longer you stay in debt, the more interest you pay.
Paying interest over a span of 30 years, this can easily translate to hundreds of thousands of dollars. That said, there is a great chance that you may not be able to prepare for your retirement.
You need perfect credit to buy a home
It is a well-known fact that your credit score can have a great impact on the mortgage loan approval process. But, you don’t need to have a perfect credit in order to secure an approval. Keep in mind, though, that the higher your credit score, the more likely you are to get the best deal.
Choose the lender with the lowest interest rate
For most people, cost is always a factor to consider but in this case, your lender’s reliability is what matters most. In a competitive buying market, this could make a big difference.
Also, you’ll want a lender who can work well with your real estate agent. So, don’t hesitate to ask your agent for referrals.