4 Common Misconceptions About Buying a New Home
Too many people let misunderstandings and fear about buying a home scare them away from doing it. It's actually a lot easier than you would expect. Most of the concerns that are brought up to many Lake of the Ozarks real estate agents are myths rather than truths. I am here to help you learn fact from fiction and get you into that home of your dreams. Here are few of those misconceptions straightened out.
This is simply not true. Even if the amount paid monthly is less when you rent, you are not building any equity, therefore you have nothing to show for the money spent at the end of the day. Paying a mortgage builds your wealth over time. Paying rent builds your landlord's wealth. All of the data that has been collected on this subject shows that it is now 35% less expensive to buy a home than to rent one.
These are just a few of the common misconceptions about owning a home that frighten people away from it. You don't have to be scared. I can help you to understand the realities of buying a home at the Lake of the Ozarks. If you have more questions or concerns like the ones listed above, give me a call and let me talk you through them. You may be happily surprised to find out that owning a new home is easily within your reach.
Follow me on Google+
It's too hard to get approved for a loan.
You will have to fill out the paperwork and meet qualifications, but many of them are not as stringent as you might assume. This Lake of the Ozarks real estate agent is here to help you through all of that. According to the latest statistics, 71% of loan applications were approved in the Fall of 2015. That puts the odds greatly in your favor.
My credit score isn't high enough to get a loan.
You don't have to have what is considered an "excellent" credit score in order to qualify for a home loan. The higher your score is, the better chances you have and the lower your interest rate will be. The average credit score on approved loans recently has been 723, in the "good" credit range. While it's never guaranteed, you can possibly qualify for a loan with a credit score as low as 620, but there are many other factors that figure into that. Here are some average ranges for credit score ratings.
Below 600 = Bad Credit
600-650 = Poor Credit
650-700 = Fair Credit
700-750 = Good Credit
750-800 = Very Good Credit
800+ = Excellent Credit
I haven't saved enough for the down payment yet.
Most people believe that you can only get a loan if you have a down payment of at least 20% of the home's selling price. That amount can be difficult, especially for first-time home buyers. You can actually purchase a house for as little as 5% down, and if you meet special circumstances, you can even go as low as 0-3.5% down. The latest figures show that 44% of millennials made down payments of less than 10%. The benefits of a large down payment are easier approval ratings, a lower interest rate, and lower monthly payments, but a lower down payment will not necessarily keep you from getting a loan.
It's cheaper to keep renting.
This is simply not true. Even if the amount paid monthly is less when you rent, you are not building any equity, therefore you have nothing to show for the money spent at the end of the day. Paying a mortgage builds your wealth over time. Paying rent builds your landlord's wealth. All of the data that has been collected on this subject shows that it is now 35% less expensive to buy a home than to rent one.
These are just a few of the common misconceptions about owning a home that frighten people away from it. You don't have to be scared. I can help you to understand the realities of buying a home at the Lake of the Ozarks. If you have more questions or concerns like the ones listed above, give me a call and let me talk you through them. You may be happily surprised to find out that owning a new home is easily within your reach.
Here for all of your real estate needs at Lake of the Ozarks!
573-365-1555
Comments
Post a Comment