Angie Travis Realtor

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There are many different myths that surround the home owning process.

Here are some of the most common ones...followed by the truth.

Myth:  My credit is too low to get pre-approved for a loan.

Fact:  Most buyers think this, but in fact, many don't know what their true credit score is.  Just because you are part of a credit reporting program, this isn't necessarily the same number that a lender will see when they pull your credit. The only true way to know if your credit is acceptable is to speak with a lender.  PLUS, once this is done, the lender can guide you on the best way to repair your credit in the most efficient manner if they do find your credit to be too low.

Myth:  I don't have 20% down payment 

Fact:   This is an easy one!  Most homes don't require 20% down to purchase a home.  With a traditional FHA mortgage, only 3.5% is required AND you can use gifts from family and friends.  With this theory, for a $100,000 home, only $3,500 would be needed as a down payment.  There are other costs involved like the inspection and appraisal.  I suggest that you check with your lender for a complete list before determining the amount that you will need.

Myth:  I don't have money for closing costs

Fact:   No worries.  In most cases, this is something that is asked of the seller to pay as part of the offer.  Not every seller is going to pay this and not every seller is going to pay all of it, but it is usually going to get you pretty darn close.

Myth:  Why should I buy?  Renting is cheaper!

Fact:   Oh pooh.  I hate to hear this one because it is like nails down a chalkboard to me!  When you are renting, you are giving all of your money and profit away to someone else.  If you are renting a house, then you are most likely paying that owner's payment and putting money in their pocket.  At the end of the lease, what do you have to show for it?  Nothing.  Rental prices are proven to be increasing every single year.  With a home, your mortgage payment will only increase if the taxes or insurance increase.  Your principal payment will always be the same...and you will be paying it down.

Myth:  I don't have extra money to pay a Realtor to help me, so I will use the Realtor on the sign or at the open house.

Fact:  This one is my favorite...because it usually doesn't cost you the buyer anything to use the expertise of a real estate agent to search, negotiate and manage your best interest.  If you use the agent on the sign, or at an open house, keep in mind THAT agent works for the seller and doesn't owe you anything! They are agreed to keep the seller's best interest in mind and sell it for the highest price possible.

Myth:  I should buy in the Spring / Summer.

Fact:   While this is the time of year that you are going to have the most options to choose from, it isn't necessarily the best time to purchase.  If you are looking for a home during the winter season, you can guarantee that these sellers are very serious sellers.  It doesn't mean that you will be able to get the home for a steal, but it does mean that they have a desire to sell.

Myth:  I am a Veteran and I have already used my VA benefits once.

Fact:  That is great.  We are excited to know that our amazing military men and women know about this great opportunity.  But a benefit of VA loans is that you are able to use it more than once.  It does have to be for a primary residence and and you can only have 1 VA loan at a time...but you are able to use the benefits over and over. 

Myth:  I defaulted on a FHA loan and cannot get one again.

Fact:  This doesn't have to be the end of your home ownership.  There are rules that have to be met (such as an amount of time and recovery of credit) but you would want to speak with a lender to find out exactly what the requirements and and how close you are to completing the list.  You never know.  It could be time to make that new purchase.

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