21 August . 2018
Help For First-Time Home Buyers: Debunking 6 Home Buying Myths
Buying a new home for the first time can seem like a mysterious and overwhelming process, especially if you’re laboring under the false impressions of some common first-time buyer myths. But knowledge is power, and our quiz will give you the strength to slay those myths and get on a glide path to homeownership.
Take the quiz, then check back here to see some detailed explanations of the answers. More knowledge, more power. No peeking.
Myth No. 1 – It’s cheaper to rent.
When comparing apples to apples, it’s often cheaper to own than rent a similarly sized home. But there’s really no comparison. Your mortgage payments contribute toward building your home equity whereas rental payments do not. In addition, renters will not benefit from a home’s appreciation in value. Plus, your home will be yours to landscape, decorate and enjoy just the way you want. See 13 reasons why it's better to own than rent.
Myth No. 2 – I'm working with a homebuilder, I cannot have an agent represent me.
Homebuilders have a virtually universal love and appreciation for real estate agents because they know their buyers will be pre-qualified and serious. Some homebuilders may even pay the agent’s commission. Many times, working with an agent can actually help you save money, thanks to their experienced negotiating skills, and you’ll have the confidence of knowing you haven’t overpaid. Why use a Realtor? It's so important, we list 36 reasons.
Myth No. 3 – I need at least a 20% down payment.
There are some advantages for putting down as much money as you can, such as lower monthly payments. But you may start reaping the financial benefits of homeownership even with a smaller down payment. Some buyers may qualify for down payment assistance programs, and gifts from parents and others are allowed. Some programs, such as 80-10-10 loans, can help you avoid the Private Mortgage Insurance that’s usually required when you have less than 20% down. Our best tip: refer to Myth No. 2 – your real estate agent is a great source of information about down payment options and other available resources.
Myth No. 4 – If I am buying a new home, it will be perfect.
Well, mainly false. You see, your first home won’t likely be your ultimate dream home, or have all the features you might be used to at your parents’ house. It will, however, come with a solid homebuilder warranty and all the other benefits of a newly constructed home. And because it’s made you become a homeowner, it will be perfect.
Myth No. 5 – I don’t have kids, schools won’t matter.
Even if you never plan to have kids – and never say “never” – research shows that school districts have a strong influence on property values. And since the potential for value appreciation is one of the many benefits of owning a home, schools matter. Check out our previous blog, Do strong schools affect property values? Research says “yes”, for more information.
Myth No. 6 – Next step in becoming a new homeowner?
Decide on a good real estate agent. Determine where you want to live. And determine your financial capacity.
Here are some good ways to get started. Explore new homes priced from the low $300,000s and up at Sweetwater. Get inspired by photos and videos of our model homes. And see quick move-in homes – some might be available with incentives from our leading homebuilders.
This material is provided for informational purposes only and should not be relied on for tax or legal advice. Prospective buyers should consult their own legal counsel before purchasing a home. View complete disclaimer at https://www.sweetwaterliving.com/terms-of-use.
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