Are you ready to buy your first home in Albuquerque? If so, it can be an exciting time. But times change, and some of the things that were true in the past about home buying are not true anymore. There are also a number of misconceptions circulating that can confuse a home buyer, whether it’s your first home or your fifth.
What are some of the misconceptions of buying a home?
1. You need a 20% down payment to get a mortgage.
Many home buyers think you still need at least 20% down to get approved. Yes that may have been true a few decades ago. In fact, at one time only people with perfect credit and 20% – 50% down could buy a home. That’s why the government created the Federal Housing Administration and offered “FHA Loans”. These days, the FHA will back a loan from a home buyer with a credit score as little as 500 and a 10% down payment. If your credit score is higher than 580, you only need 3.5% for a down payment! Certainly it’s easier to afford buying a house than it used to be.
2. You can save money by not using a real estate agent.
You simply can’t afford to not use an agent. Yes they get a 3% commission. But you’re not the one that pays that fee as a home buyer. Instead it’s the seller who pays that fee and it’s part of the selling price. Don’t think you’re getting a discount by not using an agent, as they can help you get a lower price. They will also take care of all the paperwork, appraisals, inspections, and other matters that are part of the process. You need their expertise to guide you through this difficult transaction.
3. It’s cheaper to buy a home that needs a lot of renovating.
Sure we’ve all seen the TV shows where people buy an ugly home and turn it into their dream home. And sure they make it seem so easy. But in the end, all of these repairs take time and money. And usually the case is that people end up getting tired of all the renovations and don’t end up loving their new home. So if you need to tear down the walls to make a home look good, then perhaps you should find a better choice.
If you’re ready to buy your first home in Albuquerque, let us help you make it a reality. We’re happy to answer any questions about the process and make sure you have the right information going into the home buying process. You can also search for your dream home now using our convenient home search tool. And make sure to follow us on Facebook for the latest real estate updates for Albuquerque and the surrounding areas.