Buying a house is an exciting process. Going to open houses, picturing yourself living in the space, and falling in love with the property immediately as soon as you set foot in it… all these are worth the hassle. Today, we won’t talk about the in-depth details of buying a house. There’s going to be no mention of how much down payment you need or the closing process.
What we are here to discuss are the myths! Those little snippets of conversations that are passed down from people to people, and make you believe in something illogical. As a result, you go in blindly, encounter numerous financial, and personal problems during the process.
Since there are so many myths, we have divided them into two blog posts. Below are the first five myths that an Orlando realtor needs you to know about before buying a house:
Myth #1 You Don’t Need a Real Estate Agent
Do you know how the real estate market works? Do you have information about comps? Do you have connections to lenders, home inspectors, a title company, or an attorney? If you are a first-time homebuyer, do you know what points you need to focus on your mortgage application so that it doesn’t get rejected? All this is vital for the house-buying process and you know who stays at the top of this information? A real estate agent!
Myth #2 Home Buyers Don’t Have to Pay a Commission
A seller usually pays a 6% commission to a real estate agent, based on the price of the house. This money is split between the buyer and seller agent. However, this payment doesn’t mean that the buyer pays nothing. Usually, the seller increases the house price by 2% to 3% and compensates for the commission cost.
Myth #3 The House-Buying Process Starts With Searching for a House
The first step in the house-buying process is getting pre-approved for a mortgage. If you don’t know how much you can afford then what’s the point of looking at a house. You will probably end up with a broken heart when the house you choose is out of your budget.
Myth #4 Skip on the Home Inspection to Save Costs
By saving $300 on a home inspection, you will be paying thousands more on repairs. If the house has an internal problem such as infestation, a broken pipe, or a hole in the roof, you won’t know about it without an in-depth inspection. Put a clause in the contract that if the house has major repairs, the seller would pay for them.
Myth #5 You Can Buy a House on Bad Credit
Yes, you can. However, bad credit will get you a high interest rate, and you will have to pay a hefty penalty if you miss a monthly payment. Moreover, you will also have to pay private mortgage insurance to the lender as a guarantee that you will pay back the loan in full.
There’s a lot more to discuss but we don’t want to overload you with information. Now that you know the basic myths, you can take the next step in your house-buying process. If you want to cover all the angles of the process, check out the next part of this blog post, “House-Buying Myths You Should Know About (Part 2).”
If you are a first-time homebuyer and want help with the process, visit the website Megan Dowdy Realty. Get in touch with their professional Windermere Florida realtor to find out what type of house you would qualify for. For further information, call 407-509-9279.