Buying a home will represent one of the largest financial investments that you will make. Unfortunately, it can be fairly common for first-time homebuyers to give credit to some of the more routinely held misconceptions when it comes to the home buying process. This mistake can lead to avoidable confusion that may cause unnecessary stress and other problems for you. Learning the truth behind a few common home buying myths will provide you more insight when you are going through this process.
Myth: Applying For A Mortgage Is The Last Step In The Home Buying Process
The process of touring and evaluating potential properties can be enjoyable and exciting. However, you should know that it is generally advised to complete the mortgage application process before you start house shopping. This is to ensure that you have a thorough understanding of your budget, which can help you avoid getting your hopes dashed on a particular home and wasting the time of your realtor and the house seller.
Myth: Your Credit Score Is The Only Factor Considered For A Home Loan
The process of getting a loan can be an intimidating task, but it may be essential for allowing you to buy the house that you want. However, some individuals are under the impression that the credit score is the only important factor considered by lenders. While there is no denying that this score is critical in their evaluation of you as a borrower, it should be noted that these institutions will also consider other factors as well. These other factors may include your debt to income ratio and your total net revenue. By considering all of these factors, these lenders will be able to have a better understanding of what to expect from you as a borrower.
Myth: Homeowners' Associations Have No Formal Power Over Member Properties
Homeowners' associations have become fairly prevalent in many areas. Unfortunately, some first-time homeowners may not realize that these associations can have wide enforcement powers when it comes to homes in the community. Penalties for failing to comply with association policies can result in you needing to pay expensive fines. As a result of these potential consequences, you should make it a point to closely review any homeowners' association contracts to ensure that you thoroughly understand the rules of the community before you decide to invest in a home. This is especially important if you live in an area that has an extremely competitive housing market as you may not have the time to complete the loan application before the house you want sells.
Share21 September 2016
When I started looking for a new house a few years ago, I realized that I had no idea what I really wanted. I knew that I wanted a place that had been updated recently, but apart from that, I was completely in the dark. After evaluating my budget and considering my options, I decided that it would be a good idea to go around with my real estate agent to help me to find a place. My agent was incredibly helpful, and I was able to narrow down my choices within a few hours. This blog is all about making the ever-important decision of becoming a homeowner.
