Common Misconceptions About Buying a Home

Summary: At The Vories Team located in Ft. Mitchell, Kentucky, we want to show you a few of the common misconceptions about buying a home, so you can make sure to steer clear of these myths.

If you believe that you are finally ready to make a big move and buy a home, you are probably out there searching for advice and tips on how to make the home buying process easier. While your peers, friends, and family may be lending you advice, you need to make sure that you know the real facts on common misconceptions associated with home buying. The Vories Team located in Ft. Mitchell, Kentucky wants to show you a few of the common misconceptions about buying a home, so you can make a more informed decision.

 

Credit Scores and Down Payments

Many homebuyers are under the assumption that they absolutely have to pay 20% with their down payment, and a credit score lower than 640 will not get them the proper loan. This can cause potential homeowners to shy away from looking into houses because they don’t think they will be able to meet these seemingly standard needs. Fortunately, both beliefs are incorrect. While this was the standard many years ago, it is definitely not the case in today’s market.

 

With the introduction of FHA loans to help stimulate the housing economy, homeowners can have credit scores between 500-579 and higher and only need a 10% down payment on their home. With a credit score of 580 you are only required to put down 3.5% with your down payment. While there are many conventional loans that do require higher credit scores and higher down payment amounts, it is important to know that those are not the only options available.

 

Buying a Fixer-Upper

With HGTV programs that focus on improving fixer-upper homes in abundance, it is no surprise that many homebuyers believe it will be easy and cost-effective to buy a home that needs major work. Unfortunately, these older, fixer-upper homes can lead to massive unforeseen costs that you may not be able to predict with an inspection. While projects to renovate a newly-purchased home are a good idea, you really need to understand the investment of a large renovation before you decide to buy a home that needs a ton of work. Buying a home with the knowledge that you will have to change large items, like tearing down walls and building new rooms, is probably not the best idea.

 

Real Estate Agents are Unnecessary

Many homebuyers believe that they can buy a home by themselves and save themselves the extra 3% commission that their agent would make from the sale. However, this is probably the biggest misconception about buying a home. The homebuyer does not make this payment, the seller actually makes this payment. In addition to not having to worry about paying your realtor, realtors also ensure that you find a home for the lowest price point available using comparable costs and expertise in the field. The paperwork that comes along with buying a home is also a difficult thing to decipher if you are not well-versed in real estate, and there is a good chance that you will overlook a clause or an additional fee if someone with a trained eye does not help.

 

If you are interested in buying a home and don’t know where to start, the experienced professionals at The Vories Team are here to help from start to finish. As a family owned company proudly serving all of greater Cincinnati and the Tri-State area, including Fort Mitchell, Union, Villa Hills, and Edgewood, KY, we can make your home buying experience personal and as simple as possible. Contact us today for more information.