Summer is the perfect time to start thinking about how you can make the jump from renter to homeowner. Picture it now — you’re hosting regular barbecues with friends and family, watching those incredible Arizona sunsets from your own backyard, and seeing that the landscaping is maintained according to your specifications.
Before you get too far ahead of yourself, though, it’s important to understand the ins and outs of home buying. Keep reading as our Sedona real estate team deciphers fact from fiction when it comes to navigating this process.
Myth No. 1: Finding your dream house should be the first step
This actually couldn’t be further from the truth. While it may be tempting to browse homes for sale in your desired neighborhood right from the get-go, there’s a lot you must do before house-hunting. What most first-time home buyers fail to realize about this process is that it starts with getting pre-approved for a mortgage and then finding a reliable realtor.
Myth No. 2: You must come up with a 20% down payment
There’s no question that a 20% down payment remains the benchmark for buying a home. That said, many lenders today are giving the green light to home loans with as little as 5% down. Just keep in mind that should you not have enough in savings for a 20% down payment, you will need to account for what’s known as private mortgage insurance (PMI) for quite some time.
Myth No. 3: It’s impossible to buy a home with bad credit
It used to be that lenders would turn away anyone with poor credit. But thanks to FHA loans, all you need is a 3.5% down payment and a credit score near 600 to qualify for a home loan. It’s important to communicate with your lender about what an FHA loan entails, as this particular loan isn’t for everyone.
Myth No. 4: There’s no real need for a home inspection
We hear buyers all the time go on and on about how they’d rather not go through with a home inspection. Whether you’re hoping to save a few bucks or you feel confident about being able to fix problems down the road, we strongly advise against skipping this crucial step. Think of a thorough home inspection as an investment, because it can save you a lot of money over time.
Myth No. 5: There’s no benefit of working with a real estate team
You take pride in doing many things yourself, as you should. With that in mind, it’s probably not the best idea to try turning the home buying process into another DIY project. When you hire a real estate agent, you’re essentially teaming with someone who’s been there and done that in the housing market. Not only will a good realtor walk you through the necessary home buying steps, but they will also handle the often forgotten details such as negotiations and legalities.
Contact Our Sedona Real Estate Team
Here at Brian & Cindy Real Estate, we make the home buying process simple and stress-free. Whether you’re buying your first home, second home, or forever home, you can count on our realtor for unmatched assistance and dedication.
Find your Sedona home with us today!