Congratulations! You’re ready to embark on the journey of buying a house. You may be working yourself up with question after question, and going over all of the things you feel you need to consider in your head. Take a breath. At Latitude 44 Realty, our real estate experts are here to make sure you have the support you need in this process. In this blog, we’ll discuss the most common myths first time home buyers believe, and how you can avoid them.
- The first step is to start looking for homes right away.
Wrong. Many people assume, logically, that the first step in finding your first home is to begin shopping. This only leads to unrealistic expectations of what you want your first house to be. The true first step that real estate agents advise is to make sure you have strong credit. Once you have a strong credit score, then you can work on getting yourself preapproved for a mortgage. Doing these two things first gives you the ability to see what you can truly afford, or if you’re even eligible to buy a house. After that, then you can call your real estate agent and get started looking.
- The only upfront cost is a down payment.
When home buying, first time buyers often forget the hidden costs associated with home buying. For example, if the seller determines that you’re responsible for closing costs, that’s an extra three to six percent of the purchase price. Not to mention the taxes, and cost for inspections, credit reports, and insurance.
- You don’t need a real estate agent.
A lot of first time buyers think that they don’t need the help of a real estate agent. Going it alone is a mistake. It hardly ever works for anyone because the process can become confusing and costly without the proper knowledge. Unless you have the experience that real estate agents do, working with an agent gives you access to unparalleled expertise and guidance that can save you headaches, stress, time, and money in the long run.
- It’s cheaper to rent than it is to buy.
This seems logical, but it’s not true. The truth is that it all comes down to where you live, and the type of home you’re wanting to rent. With the dramatic increase in rent prices over recent years, often rent is the same as a mortgage would be. Many people find that the real estate investment is worth it.
- A 30-year mortgage is the best option.
Extending your mortgage to the longest option is not always the cheapest option. With 30-year mortgages, most people don’t realize that you actually end up paying more over the long-run throughout the life of the loan. With this type of loan, you’re borrowing the same amount of money for twice as long, at a higher interest rate.
- You don’t need a home inspection.
Home inspections pay for themselves. Many first time home buyers skip the expense of getting their home inspected because they don’t think they need it. However, this is a dangerous move. Having your home inspected makes sure your home is the healthiest and safest place for you and your loved ones to live, and can save you costs in the long run if an existing problem becomes worse. Not to mention, it’s common for home builders to rush the project and overlook details that can cause problems. The most worthwhile tactic is to get the inspection performed before you close on the house and it’s too late.
Latitude 44 Realty is dedicated to giving our clients, honesty, hard work, and knowledgeable guidance in their real estate endeavors. If you’re looking to buy a home in the Bend, Madras, Prineville, Redmond, Sisters, and Sunriver areas, give us a call today. We look forward to helping you find the home of your dreams.