Now is not a good time to buy a home. Buying a home is very expensive. These are either voices inside your head discouraging you from buying a home or home buying myths that may or may not have any truth to them.
Buying a home can be a complicated process, especially if you have never bought a home before. Today’s housing market is much different than it was even 20 or 30 years ago. The rules that applied to home buyers long ago simply don’t apply anymore.
If you are in the market for a new home, make sure you stay clear of the inaccurate information and misconceptions that are out there. William Raveis Real Estate, your real estate agency serving Vermont, breaks down a few of the home buying myths that exist.
It’s Cheaper to Rent Than Own
In the short term, there is a little truth to this myth. However, if you plan on renting for more than just a few months, your best bet is still to buy a house.
One of the main reasons it cheaper to own is because if you choose a fixed rate loan, your mortgage payments remain relatively stable for the term of the loan. Rent is never stable and can rise annually.
You Have to Have Perfect Credit to Buy a Home
You do not have to have perfect credit to buy a home. Granted, if your credit needs some work, you might have a difficult time getting a loan, but if your credit is that bad, chances are it is low enough to keep you from renting a home as well.
The bottom line is that a low credit score will hurt both renters and homeowners. It pays to work on your credit score.
Never Buy in the Fall or Winter
Many people believe that spring is the best time to buy a house. The reality of the matter is that because so many people wait to buy until the spring, competition is high and this drives prices up.
According to research, inventory for homes peaks in October, which means less competition in the fall and better prices.
30-Year Fixed Mortgages are the Best
If you buy a home and plan on living in it for 30 or more years, then a 30-year fixed mortgage makes perfect sense. However, if you plan on staying in the house for only a few years, there are better loan options.
For example, a 15-year loan makes sense if you only plan on staying in your home for 10 years. Make sure you explore all of your loan options.
20 Percent Down is Mandatory
The more money you put down on a home, in most cases the better off you will be. That said, while 20 percent is ideal, is it still possible to secure a loan with less. In fact, you can secure a loan with only three to five percent down.
If you are in the market for a home, contact William Raveis Real Estate.