Common Home Buying Myths Busted

We’ve uncovering common home buying myths and calling them busted!

So, you can make the best decision for you and your family.

Common Home Buying Myth: #1

Buying is always better than renting.

Not.

Even though it’s one of the most popular myths out there. Buying is not always better than renting.

Truth is it depends on your circumstances. The New York Times offers a calculator to help determine what’s best for you.

A general rule is that if you’re going to be in your home for 1-3 years, it’s usually better to rent. If you’ll be in your home 5-7, it’s usually better to buy.

But that leaves a lot of grey. And thus, you’ll need to consider multiple factors.

Common Home Buying Myth: #2

Home maintenance is always expensive.

U.S. News reports that homeowners spend about 1-4% of a home’s value, annually, on maintenance and repairs. Costs increase as the age of the home increases.

When you consider that new homes and new appliances, etc. for the home often come with a warranty, the cost may be less up front. And energy-efficient upgrades often end up paying for themselves.

Conversely, if you buy a fixer-upper, you can put a considerable amount of money into upgrades, repairs and curb appeal. So, you’re investing more up front. But you’ll most likely save in the long run.

So, just like renting versus buying it depends.

Common Home Buying Myth: #3

You’ll need to pay 20% as a down payment.

That used to be true. But nowadays, different mortgages with various down payment percentages are available. There are even some with no down payment at all.

Common Home Buying Myth: #4

You’ll need a high credit score. Ideally 620-640 or better.

That used to be true. But nowadays, different mortgages with various down payment percentages are available. There are even some with no down payment at all.

Lenders sometime offer mortgages to people with credit scores as low as 500, with 10% down.

Common Home Buying Myth: #5

You can save money by not using a real estate agent, because of their fees.

False. The home buyer does not pay the real estate agent’s commission. The seller does.

Realtors actually save home buyers money. Because they help you get the lowest purchase price. Plus, they break down the contracts and legal process in a way that saves you time and money.

Now that You Know the Truth.

Ready to buy in the Fresno, CA area? Let Foxen Realty save you time and money in the home-buying process. Browse our listings and let us know how we can help.