Home Buying Myths

Myth: I had some debt when I was young and I ruined my credit. I’ll never get a mortgage.

Reality: You don’t know what your credit history shows until you look. And if you do have blemishes from the past – even a bankruptcy - many lenders will overlook problems if the past two years show good credit practice on your part.

Myth: I heard you need to put 25% down to buy a home. But my friend says that you can get a mortgage with no down payment at all!

Reality: Both scenarios are uncommon. Although there are a variety offinancing programs available, most require you to put at least 3%-10% down, butrarely would you need 25%.

Myth: If I have several agents looking for homes on my behalf, I’ll find a house more quickly.

Reality: Like most relationships, this one thrives on communication, loyalty and trust. By working exclusively with one agent you will improve both the process and the results.

Myth: If I want an agent to represent me as a buyer. I’ll have to pay them myself.

Reality: Buyer representation means that the sales associate you select works with your best interests in mind. In most cases, however, they receive a portion of the commission paid by the Seller.

Myth: I should find a new home first before I sell the one I now own.

Reality: If you find a buyer for your home first, you’ll have more negotiatingpower in both the sale of your current home and the purchase of a new one.

Myth: I just made an offer on a home I love, but so did several other people. I’m worried that someone else will outbid and get it.

Reality: Different sellers are motivated by different things. In addition to price, a seller will look at the other terms of the offer – contingencies, closing date, required repairs. Many times a “clean” offer from a pre-approved buyer will be more attractive, even if the price is slightly lower.