October might be the time for TRICKS but you don’t want to feel that way when you are buying your first home in the Ventura area. Purchasing your new home can be an understandably be a daunting process! While there is plenty of real estate advice out there on financing, the process, steps to take, and more, we know that there is a lot of information that steers first time home buyers in the wrong direction. Never fear! We are here to tell you the truth about several common myths that you might hear and make your journey towards your new home a TREAT!
Myth #1 | It begins with the search.
Fact | You’ve made the decision purchase your first home. You know your lists of must haves in your new home. It’s time to start scrolling the internet for your dream home, right?! Wrong! Although you can begin an initial search for homes to see what is currently available, you should not have the mindset that this is the first step in the home buying process. Your very first step should be getting your finances in order. Make sure your credit is in good shape and get pre-approved for a mortgage. There are two major reasons why you want to take these steps first: (1) you can determine a realistic budget and search for homes that fit within your appropriate range and (2) you will stand out to sellers since you have proof that you are financially ready to purchase a new home.
Myth #2 | Bad credit means you have to wait.
Fact | It is undoubtedly true that having bad credit will make it more difficult for you to purchase your new home right at this moment. However, you do not have to wait. There are financing options, such as FHA loans, that might still be available to you. Just be sure to do thorough research about all the options you have available so that you make the best choice for your current and future financial situation.
Myth #3 | You will save money with a 30-year mortgage.
Fact | A 30-year mortgage does give you more time to pay back the loan, which seems like a way for many first time home buyers to save money. However, if you break it down you discover that you are actually paying more. It takes you twice the time to pay back the same amount you would have borrowed with a 15-year mortgage. That doubling of years means a dramatic increase in the amount of interest payments you are making. Check out our helpful Finance Information for more on the types of loans available. We are not saying that you should not choose a 30-year loan. You just need to do plenty of research to determine what will best fit your lifestyle.
Myth #4 | The only cost you pay upfront is the down payment.
Fact | You have enough money saved and set aside for the down payment. That’s great! BUT, what about added costs for credit reports, closing costs, home inspections, insurance, and anything else that could unexpectedly pop up. Make sure that you have additional money set aside for these added costs that are almost always part of the home buying process.
Myth #5 | You must pay 20% for your down payment.
Fact | A 20% down payment keeps you from having to pay Private Mortgage Insurance (PMI). It does not mean that you must pay 20%. See if you are eligible for loans with a 5% or 10% down payment if you are willing to pay monthly fees for PMI. You may also qualify for FHA loans or other down payment assistance options.
Myth #6 | You do not really need a home inspection.
Fact | You should NEVER skip the home inspection. Doing so puts you at risk of buying a home with a lot of underlying, hidden issues. This will turn your new “dream” home into a money and time pit. Avoid any of this by having a thorough home inspection done before you negotiate a deal for the home.
Myth #7 | Since you can move eventually, your must haves should focus on just your immediate situation.
Fact | You never know how long you will stay in a home. It is best to find a home that can still fit you as you and your family continue to grow and move forward. Think about your immediate needs and your needs 10, 20, or even 30 years from now. Regardless of what actually ends up happening, this gives you the option to avoid or delay moving in the future and can also help you choose a home that will have greater resale value if you do not to sell someday.
Myth #8 | You will lose the home if you do not offer the asking price.
Fact | It is true that sellers are hoping to get the most amount of money for their home. However, offering a price lower than asking does not mean that sellers will automatically deny your offer. Sellers are often open to negotiating with buyers that show their finances are in order. If you have awesome credit, are pre-approved for a loan, and/or have your down payment ready to go, you show that you are a serious buyer and that the process can begin immediately. This is often enough to make sellers willing to come down on the price.
Myth #9 | A realtor is unnecessary these days.
Fact | An Experienced Realtor by your side during the home buying process is an invaluable resource. Sure, the internet can help you easily search for houses or do some own research on your own but it can never replace all that a realtor does. Especially when it comes to first time home buyers, it is important to work with a realtor who understands the local market, has many years experience negotiating, knows exactly what to look for in a home, and so much more. Having that real estate ally will help alleviate a lot of stress for you during the process.
Now that you know the facts, you are ready to BUY your dream home in Ventura County! Give Blake Mashburn a call today or visit his website at https://blakemashburn.com/ so he can help make your dreams a reality!
