Top 10 misconceptions about first-time home buyer’s journey

Isn’t it a big decision to buy a home? Yeah! But you don’t want it to be a scary one. 

So You’re Thinking About Buying a Home…

Buying a home is an exciting first step to build a secure financial future. Planning ahead about buying a home, you have received abundant advice from your family and friends. 

You need to consider a lot – I mean a lot! Credit score, mortgage rates, down payment, and more. And you don’t want to be in the process of listening to myths to derail your goals. Google will also get you so much information to sift through, but it is tough to separate fact from fiction. We know your home-ownership dreams are large, and your confidence too! That’s why the GrahamBelle Group of qualified professionals are here to reveal the truth behind common misconceptions about buying a house in Corpus Christi, TX, for first-time home-buyers. 

10 Common misconceptions for home-buyers you might fall for.  

“I cannot pay 20% down payment…”

While a 20% down payment is ideal, it’s not a must-do. The loan requirements differ by loan type. Plenty of buyers are buying homes with down payments of less than 20%. You can buy a house as tiny as 3-5% down from non-conventional loans. There are multiple options available out there; a mortgage broker can help you suggest which option is the best for you.  

From a lender’s perspective, you are a riskier borrower. You might need to pay mortgage insurance as part of your monthly payment.

“Real estate agents are expensive…”

In your home-buying journey, a real estate agent is with you at every step. It brings more value to the table. As they spend countless hours working on your behalf, and sounds expensive, right? Well, no! 

They are doing their job to sell houses for cash as they put all your aspects first in this process. And buyers don’t pay a real estate agent’s commission. The seller will pay it for closing the deal.

“You can’t call a real estate agent unless you are ready…”

The earlier, the better! Bringing an agent to help with the purchasing process can be a huge help. Even if you are at the early stages of browsing a real estate market at Corpus Christi will be a valuable asset upfront to buy a house.

They can create a search for Multiple Listing Service (MLS), so you can get notified for homes that meet your criteria. It is a great idea to search a few months before you are ready to buy. So you can find a house in your area and within your budget.

“Buying fixer-uppers is to stay within budget…”

The trend is encouraging people to seek fixer-upper homes as it allows them to renovate and include everything on their wishlist. 

But this isn’t always the case. Sometimes homes need a lot of work that requires a lot of money. Big renovation or remodeling can be quite expensive. If you are really interested in a fixer-upper, ask your agent to show a combination of newer and older homes. We have houses for sale in Corpus Christi in excellent condition. 

“Only advance cost to buy a house is paying down payment…”

A down payment is big, but it isn’t the only thing you spend in the home buying process. You need to bring closing costs to the table that are from 2-4% of the total purchase. It includes the cost of homeowners insurance, title fees, and more. Your lender also requires an appraisal as you have to pay when the appraisal is conducted, or it might roll into closing costs.

“To buy a house I need a high credit score…”

It’s not like that to buy the perfect home; you need perfect credit. The loans are out there for buyers to qualify with lower credit scores. People who have credit issues in the past find it great. It can come with additional fees too! Speak with GrahamBelle agents or brokers to talk through which options might be best for you.

“I cannot purchase as I am still paying existing debts…”

Probably buyers want to pay off their existing debts before taking them into home-ownership, but it’s not a requirement. When you apply for a mortgage lender, consider your debt-to-income ratio. They ensure that you are able to afford your monthly payments along with other debts. If your income is high and you can make payments regularly, other loans will not prevent you.

“It’s all about location, location, and location…”

It’s not always true. Location is a great factor to consider when it comes to school and commute times. But, think about how it will function for you and your family’s lifestyle. Consider factors such as bedrooms, bathrooms, and it will be fit for your growing family. You might sacrifice an ideal location for a new home or with little maintenance and more space.  

Our Graham Bell Group speaks to you about a location with great resale potential. We buy a house in Corpus Christi and give you a fair rate if you want to sell your old house.

“I can buy a perfect house as I want and within budget…”

If you want to purchase, you need to end up compromising on something. The perfect house with every item on your wishlist is likely out there and over your budget. To narrow down your list and sort important things in order of priority. 

Note your deal-breakers, such as the fenced yard or 3 bedrooms along with a “nice to have” facility, but you can live without. It helps your real estate agent find the best property work for you.

” Budget is decided based on what lenders approve.”

How much you afford and how much you qualify for – two different numbers! 

When you pre-qualify for a mortgage, your lender will look at your debt, credit score, income, and history to determine the money you can qualify for. This number might be higher for some people than they thought because lenders tend to approve the highest amount the lender thinks you can afford. Figure out what you can afford and calculate your all expenditures and taxes, and dues.

A first-time buyer or seasoned homeowner, you can go through the home buying process with our experts’ help. We answer all your queries and do the hard work so you can buy a house in Corpus Christi, TX, of your choice!