Are you aware of the misconceptions people have about buying a home? For some homebuyers, the ordeal of purchasing a home feels fraught with uncertainty and peril, but getting the right help and educating yourself will relieve those fears. Before you get absorbed in the world of home listings and open houses, let’s go over 5 misconceptions people have about buying a home in Northern Kentucky in today’s market.
Agents Aren’t Worth the Money
One of the misconceptions people have about buying a home is that while you may not need an agent in order to purchase a home, hiring the services of a qualified and experienced real estate agent can easily be the secret ingredient that removes a great deal of the busy work and stress from your homebuying venture.
Shopping around and meeting with a few agents gives you a better idea of who will work best with you as well as provides you an opportunity to pick their brains a bit. Your agent’s working knowledge of the local market will help you out in finding worthwhile properties that are priced appropriately and best meet your needs.
Also, any agent worth their salt knows how to represent their client in negotiations while keeping everything professional.
You Must Be Debt Free
Don’t be under the impression that only those without any debt have a shot at buying a home in Northern Kentucky.
Mortgage lenders expect the vast majority of applicants to have some debt. Lenders use what is called the debt-to-income ratio – or DTI – to figure out if slapping on your additional mortgage payments every month is going to put you in a financially precarious position. This ratio assists the lender in determining your risk level if they are to approve your loan.
It’s always good to attempt to pay down your existing debts prior to applying with any lenders to put yourself in the best light.
A 20% Down Payment Is Required
We will always recommend trying to provide a 20% down payment when buying a home in Northern Kentucky.
The reason for this is lowering your monthly payments by avoiding private mortgage insurance, or PMI, and creating the potential for a lower interest rate from your lender. Keeping that in mind, the 20% down payment is not absolutely necessary in all cases.
If you’re taking advantage of a VA, USDA, or other federal loan programs, you may qualify for a lowered or no down payment while still avoiding paying PMI.
Taking the time to look into your eligibility for any loan programs can make a big difference, and should not be skipped.
Only Buy in Spring and Summer
The spring and summer are the times of year that the real estate market traditionally heats up. However, choosing to shop around and purchase your new property during the fall and winter off-seasons could end up saving you a bundle.
Home inventory tends to be lower during the cold seasons but the buyer competition decreases as well. Taking a chance on a desirable property in the middle of the winter could prove a serious money saver and should not be dismissed.
Don’t rush yourself into buying a home and give yourself some breathing room to make rational decisions while searching for that spectacular deal.
Everyone Is After Your Money
Some buyers – especially first-time buyers – can get a paranoid feeling that everyone is out to scam them at every turn.
Your agent wants you to purchase a home that you’re happy with so they grow their reputation with another satisfied client and your lender wants to ensure they get paid back for their long-term investment in you. Finally, the home sellers may want to get what they can from selling their home but it’s extremely unlikely that it’s anything personal.
Trying to keep a positive attitude no matter the circumstances goes a long way when searching for your next home, and it can turn that search into something truly enjoyable and special.
Professional Partners When Buying a Home in Northern Kentucky
If you’re buying a home in Northern Kentucky or Cincinnati area property, Team Sztanyo has the experience you need to help make the buying process easier, less time consuming, and we’re on your side to help make sure you get the best deal while we worry about all of the details.
Either way, countless local homeowners and investors trust Team Sztanyo to help them wade through the real estate buying and selling process while keeping more cash in your pocket and helping you save the time and headache of working with less experienced brokers.
If you have questions like: What are some common mistakes a person might make when buying a home? What are the obstacles people face in buying a house? Is it worth buying a house even anymore? Then give us a call! We take the time to listen to your concerns and answer any of your questions here at Team Sztanyo, with no obligation. Contact Team Sztanyo at (513) 813-6293 today!