How’s the house-buying process going? Have you encountered any problems yet after knowing about the myths that we mentioned in the first part of this blog post? If you haven’t progressed to closing yet, you are bound to come under the influence of another myth or two.
Below are five more house-buying myths that will clear your mind of any confusion:
Myth #6 All Lenders Quote the Same Price
The reason why it is recommended to get in touch with multiple lenders is that they offer different interest rates. If a lender offers a 3.4% interest rate and the other offers a 3.1%, you could be saving thousands of dollars with just a .3% difference.
Myth #7 You Cannot Qualify for a Mortgage If You Have a Student Loan
It all depends on your debt to income (DTI) ratio. Your salary determines how big of a mortgage you can get. For example, if your salary covers your utility bills and debt and still leaves room for savings then you can apply for a mortgage. The better your credit score, the higher your chances of getting approved. Just make sure your DTI is not more than 50%.
Myth #8 Sending a Counteroffer With a Lowball Price Is How You Negotiate
Just because the seller has set a high asking price doesn’t mean he will be open to lowball offers during negotiations. Don’t let a good deal slip through your fingers just because you think there’s room for negotiation. If the house does not have any major repairs and looks perfect from the outside, ask the seller how much they are willing to lower the price. If it falls in your budget, move ahead.
Myth #9 “Now Is Not the Right Time to Buy a House”
There will always be something that will stop you from buying Orlando real estate. In spring, the competition is high, and it’s low in fall. Another is, “Mortgage rates are high right now.”
The truth is ― every season comes with problems and mortgage rates are always rising. This seasonal development doesn’t mean that you shouldn’t buy a house. Analyze your budget and do pay attention to the season, but other than that, throw everything out the window.
Myth #10 Buying a Fixer-Upper Is Cheaper
Only if you are planning to make the repairs by yourself! Even then, you will be using a sizeable chunk of your savings. You don’t know how many repairs you will need and the extent of the renovation. Moreover, you will need permits to make any big changes in the house. If this is just an investment, buying a fixer-upper makes sense. However, if you are planning to live in it, you are making a mistake.
And that’s it with the house-buying myths that you need to be aware of. Know about them could mean the difference between spending hundreds and thousands of dollars in the process. 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.