21 May First-Time Homebuying Misconceptions
The homebuying world is exciting, but it can also be complex and somewhat imposing for first-time homebuyers. At City Creek Mortgage, we’re here to make everything as simple as possible for you as you go through the mortgage loan and home search process.
Unfortunately, a large amount of misinformation spreads across our field easily – there are a lot of amateurs posing as real mortgage experts. Let’s look at a few of the things many first-time homebuyers miss or pass over during their home search process, plus how you can avoid these issues.
Traditionally, it’s been expected that you pay 20 percent of the principal loan amount in a down payment up front. A recent survey showed that over a quarter of all homebuyers think this 20 percent number is a hard, fast requirement – this simply isn’t the case, and getting a home with a much lower down payment is possible in a variety of ways.
There are several loan options with lower down payments, even some that don’t involve a much higher mortgage rate moving forward. If you can get 20 percent down for the home you want, that’s fantastic; if you can’t, there are still options at your disposal.
Real Estate Agents
Many younger homebuyers don’t really understand what’s needed to facilitate buying or selling a property, and they conclude that due to the online resources available to them, they don’t need a real estate agent.
While this might rarely be true, it’s often a detriment to your search. Someone who knows and studies the market is still vital – you don’t just need that information you can find online, you need an expert who knows how to interpret it as well.
Another trend for younger homebuyers is a feeling that an open house isn’t needed. This may be a trend highly impacted by digital tour services now available online, but nothing can replace getting the true feel of the home by seeing it in person.
For more on avoiding common first-time mistakes when searching for a home, or to find out more about any of our mortgage services, speak to the pros at City Creek Mortgage today.