Finally ready to make the transition into home ownership? That's awesome, and in this exciting time you can be turning to friends and family for an insight into the process. However, there seems to be a circulation of misinformation spreading around, so we're here to clear up a few myths.
1. THE FIRST STEP IS SEARCHING FOR A HOME
You know the saying, "Don't put the cart before the horse," well that's important to remember when it comes to buying a home. You don't want to start looking for a house until you have gotten to sit down with a lender and discuss what the bank will qualify you for. If you fall in love with a house that's $250,000 and come to find out you're only qualified for $200,000 you can get your hopes crushed and waste a lot of time. Don't start the process on the wrong foot and make sure the numbers line up.
2. YOU DON'T NEED A REAL ESTATE AGENT
For starts, when buying a home, 99% of the time the buyer's agent gets paid by the sellers. That random 1% can be for odd circumstances. So you're getting to use the services of a real estate agent for free. Having a real estate agent on your side means you'll get to see homes that aren't as readily available on public searches, you avoid outdated listings and scammers (there are lots of them), and you have protection when it comes to navigating the legalities of contracts and buying a home. Why wouldn't you want an awesome negotiator working to ensure you get the best from the transaction? For FREE!
3. YOU CAN'T BUY A HOME WITH BAD CREDIT
Fortunately for some, this is a myth. Lenders and banks come by the hundreds of thousands and all though there are a few loan options, a lot of lenders can work with credit scores down to the low to mid 500's. Get in touch with an agent to help you connect with the right lender who can help you potentially approved. There is a lot of factors that go into approvals, but your credit doesn't have to be a sore thumb during the process. However, you will be doing yourself a favor if you connect with a credit repair specialist to at least get those numbers in the 600's. A better score will lower you interest rate.
4. YOUR DOWN PAYMENT HAS TO BE 20%
Think you have to sell an arm and a leg to buy a home? Not at all! An FHA loan only requires 3.5% while a conventional only requires 5%. There are a lot of programs that can potentially help you with down payment assistance or be 0% down mortgage. USDA and VA loans are the most popular 0% down programs. If you qualify, this can take a big chunk off the amount of cash you have to bring to the closing table.
5. DOWN PAYMENTS ARE THE ONLY UPFRONT COST
This is one of the biggest misconceptions. There is a lot of cost that goes into buying a home, and that includes upfront costs. One of the mandatory ones are a termite and appraisal. If you are getting a mortgage, the home will have to appraise and get a letter stating there are no termites in the home. Termite can range between $25-$75 dollars. An appraisal can range from $300-$700 dollars. Aside from your down payment, you then have to pay for closing costs. And NO, they are not the same thing. Closing costs can range anywhere between 3-6% of the purchase price. In certain markets, this can be negotiated for sellers to cover by rolling into the offer price, but whether that decision is smart to do or not when it comes to landing your dream home will need to be discussed with your agent.
Now that you have some knowledge to get the process started, get in touch with an agent who will help you get through the process as smoothly as possible.
Author:Lynda Western Phone: 602-919-0857 Dated: August 10th 2017 Views: 207 About Lynda: A family oriented person, Lynda has a passion for helping people in unfortunate situations. An Ariz...
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First of all, I am a family man… I love spending time with my beautiful wife, Jennifer, our two daughters and most recently a son. We have three dogs and I also enjoy cooking and travel. Working on just about anything in the garage, we build various hot rods, muscle cars, motorcycles, rat rods, pickup trucks and even some woodworking. Tuesday nights I still play on a competitive adult football team so I lead a busy, but fun life!
I am raising a family of my own so often share in the same hard decisions you need to make and can therefore relate.
My goal is to become friends after working together and not just be your Realtor. I want to be your Real Estate Resource for life that you can refer to family, friends, co-workers and anyone else you know needing assistance.
I originally obtained my Real Estate license in 2003 and then upgraded to a Broker’s license in 2007. I currently serve as the Treasurer for WeMAR (Western Maricopa County Association of Realtors) and also sit on the Board of Directors for AAR (Arizona Association of Realtors). In the past, I have served as Chairperson for WeMAR’s Young Professionals Network and Chairperson for the ARMLS (Arizona Regional Multiple Listing Service) MLS Committee. I have been the Designated Broker for RE/MAX Preferred Choice since March of 2013 and served as Managing Broker prior to that for a few years.
Proudly I can say I’m a member of the RE/MAX Hall of Fame. In 2013, I won the prestigious “30 Under 30″ National Award from REALTOR Magazine and was also named to the Real Trends America’s Best Real Estate Agents list. Trulia also ranks me in the top 1% nationwide for Realtors based upon sales and client testimonials.
I have a wide variety of experience with buyers and sellers of residential, new construction, land, retail, multi-family, commercial/industrial and investment properties. Having led up to an eight-person team during my Real Estate career, I know how to manage multiple personalities and coordinate tasks. Regardless of team size, client representation has always been priority #1. Providing consistent & prompt communication, accurate market data and promoting our client’s best interest(s) is constantly at the top of the list.
Use The Right Paint FinishReady to paint your home? Be sure to use the
"Justin Schlegel was referred to me by my Dad. When I asked my dad how he found Justin, he said "he was walking around the neighborhood handing out business cards. You just don't see that kind of hustle from most Realtors®." My parents were selling their home and were extremely impressed with how Justin handled the process.
Justin has since helped my sister sell her home, and helped find my parents a rental also. So, needless to say, when my wife and I were looking for our first home, he was the natural choice. I really like to research as much as I can before making a decision, especially one this important. I actually interviewed about 3 Realtors® before I met with Justin. They always say "everyone and their mom knows a Realtor®" but the problem is, everyone's mom isn't always a good Realtor®. I really wanted to make a well researched purchase, and do my due diligence before making a decision on what Realtor® we trusted our savings and first home purchase with. When I met with Justin I was blown away by his knowledge of the market and the home buying process. He really knew all of the details, and how to use those "tricks of the trade" in our favor.
I was sure my wife and I were not going to be the easiest couple to find a house for. Like most first time home buyers, we wanted a lot more home than we could reasonably afford, and we were up against a hard deadline. Justin was AMAZING! He was able to help us navigate buying our first home flawlessly. We looked through a ton of homes in our price range and Justin was extremely patient with us. Justin was able to find us a beautiful home that checked all of the boxes, really putting in the extra effort. He has continued to impress all of us in my family. We eagerly and confidently recommend him to all of our friends and family.
Anthony & Brittany in Phoenix, on behalf of Justin Schlegel