Looking for a home? Avoid these 5 common home buying mistakes, assumptions, and myths.
- Pre-Approval: Getting pre-approved isn’t necessary. A buyer can be devastated if they find a home they love, write an offer, and have it accepted only to find out in the future they have been declined for a mortgage.
- Down Payment: You must put 20% down and buy at your max qualification. While making a down payment of 20% or more allows you to avoid private mortgage insurance, there are still many options for borrowers with smaller down payments. For example, FHA home loans feature less stringent qualification and credit requirements, and down payment options as low as 3.5%.
- Credit Score: You must have a perfect credit score and no student loans. New government guidelines could be in your favor. Ask me, your realtor.
- Rent or Own: It’s cheaper to rent than own. There may be some truth to this in the short term, but if you plan on renting for a couple years or more — it’s in your best interest to look into a home purchase. That’s because mortgage payments are stable (when you choose a fixed-rate), whereas rent can rise annually.
- Real Estate Agents: All agents are the same. Real estate is one of the few areas where it really doesn’t cost any more to hire the very best. A top broker, like myself, will protect you from issues you are not even aware of and steward the transaction to a successful outcome. Selecting the best-qualified agent is the most important decision a buyer will make in the home buying process. Contact the Hickman-Coen Home Team, call Helen at 617-416-8173.
Home Buying a home is a process, not an event. Home Buyers, to avoid home buying mistakes, need the guidance and patience of a professional Full-Service Realtor; from start to finish.