Buying a home is one of the largest investments one can make and while searching for that dream house, there will be several misconceptions about buying a home that you will come across. Buying a home, especially for first-time buyers, can be a complicated, confusing undertaking. And to further complicate matters, the housing market is different from what it was just a decade or so ago. Some of the rules that once applied no longer matter now. It doesn’t help matters any that there is so much bad information and so many misconceptions floating around out there. So to try to cut through some of the confusion, we present here the biggest misconceptions about buying a home in NKY or Cincinnati.
Common Misconceptions About Buying A Home In NKY or Cincinnati…
You Have to Have Great Credit
Good credit helps, but it’s not an absolute must now. Lending standards have tightened up, but you can still get a mortgage with less-than-sterling credit. Banks and other mortgage lenders also take into account several other factors in the approval process, such as income, debts, and assets, and your employment history. So if, for example, you’ve saved up a sizable emergency fund, this can offset a credit score that isn’t so great. A lower credit score doesn’t necessarily and automatically disqualify you.
The Down Payment Has to Be 20%
Another of the misconceptions about buying a home in NKY or Cincinnati concerns the down payment. Long ago, yes, you typically had to put 20% down, but that’s not always the case now (though, generally, you’re better off paying more down). Today, you have several options to help you get by with a smaller (or even no) down payment. These options include FHA and VA loans, which allow you to put down only 3% to 5% of the purchase price. And most lenders will allow you to pay 5% to 10% down if you are willing to pay for private mortgage insurance. There are literally thousands of options for down-payment assistance for low-income home buyers.
A 30-Year Loan is Best
Traditionally, a home mortgage loan was most often a 30-year loan. So this remains one of the more stubborn misconceptions about buying a home in NKY or Cincinnati. A 30-year loan is not the only option and not always the best. A 30-year loan will allow you to have smaller monthly payments, but with a 15- or 2-year loan you will pay a lot less in interest over the life of the loan. You will have higher monthly payments with a shorter loan, but you’ll pay a lot less over the long haul.
If You Pre-Qualify You’ll Get a Loan
Another common one of the misconceptions about buying a house in NKY or Cincinnati is that you will automatically get a loan if you pre-qualify. The problem here is that people are confusing pre-qualifying with pre-approval. Pre-qualification just lets you know what kind of mortgages and how large you could or may qualify for. Pre-approval, on the other hand, means that you have actually been approved and can, in fact, get a mortgage loan for the amount you have qualified for.
The Down Payment is the Only Upfront Cost
This is one of the misconceptions about buying a house in NKY or Cincinnati that can wind up causing a lot of financial heartaches. For the down payment is only the beginning of your upfront costs in purchasing a home. You also have to reckon on the closing costs, which can run from 3% to 6% of the purchase price, as well as a host of other fees, taxes, insurance and costs for inspections and credit reports
You Don’t Need an Agent
This last of the misconceptions about buying a home in NKY or Cincinnati is easily countered when home buyers understand just how much help a good agent can provide. And if you’re a first-time homebuyer, going the DIY route really isn’t a good idea.
I’m Eric. I grew up in Northern Kentucky (Florence) and am proud to call it my home. I love serving people and my community! If you need help selling your house, give me a call.
Team Sztanyo is a Greater Cincinnati real estate team whose mission is to help families find their way home.
We are a trusted guide who cares, serving our clients with competence and professionalism through the home buying and selling experience.
Get to know how we operate, our style of communication, our comfortability with your circumstances.
TO DISCOVER EXACTLY WHAT A GOOD AGENT CAN DO FOR YOU AS A HOME BUYER, CONTACT US TODAY! (513) 813-6293
If you’re buying a home 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 wise decisions you should make when buying a house?
What is the hardest part of buying a house? What are some wise decisions you should make when buying a house? What is the hardest part of buying a house? Then reach out to us! When you call our hotline, you’ll be connected with our real estate expert who will listen to the specifics of your situation before making recommendations and answering any questions you have.