Debunking Common Home Buying Myths

Debunking Common Home Buying MythsIf you are a first-time home buyer, you understandably may have heard a million things about buying a home, and unfortunately some of the them may not be correct. While there may be many things that you need to learn along the way to get the full story on buying a house, there are some common myths that can be debunked for you right now to help you make a better overall decision about your home buying plans.

You Need to Put 20 Percent Down

One of the most common myths relates to how much money you need to put down to buy a home. It was common and even required at one time to put 20 percent down, but this was decades ago. Some home buyers today will put 10, 5, 3 percent or less as a down payment. There are zero percent down programs that even reimburse you on closing costs, so you may have to put very little down to close on your home. However, it is wise to put some money as a down payment. This lowers your monthly payments, establishes equity and minimizes the chance that you will be upside down in your mortgage. Furthermore, the lower interest rates are generally associated with a larger down payment.

Your House Will Be an Investment

Decades ago, people purchased a home to be an investment or nest egg. They made their payments with the hope of building equity that could be recouped once they sold it, and some even made paying off their home their entire retirement plan. It is true that you can build a considerable amount of equity in your home over the years through mortgage principal reduction and value appreciation, but your home should not be viewed as an investment. There are costs associated with home ownership as well, such as property taxes, insurance, repairs, maintenance and more.

You Should Get Pre-Qualified to See How Much House You Can Afford

You should get pre-qualified early in the mortgage process, and the mortgage company will tell you how much of a loan you qualify for. Some home buyers will take this as the golden rule for how much house they can afford, but there is error in this. A mortgage company only takes into account your gross income and the expenses showing on your credit report when determining affordability. You may have childcare expenses, marina rent for a boat, an expensive lifestyle budget that you want to maintain and more that are not reflected on your credit report. It is best to use the mortgage pre-qualification with a grain of salt, and review your personal budget when determining the maximum monthly housing payment you can afford.

If you are interested in learning more about home buying or the mortgage process, you can get honest answers from a reputable real estate agent and mortgage broker. These two professionals can be instrumental in the overall home buying process and can help you to make a better decision about which home to buy.

Are You thinking of buying a Home in Tampa Bay?

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In the meantime, check out these 1 click searches:

Beautiful Townhome in Hunters Green $349,900 Pending

17543 Fairmeadow Drive Tampa, Florida

2 Beds 2 Baths 1,747 SqFt 0.090 Acres

This delightful 2 bedroom, 2.5 bath Townhome in the well-manicured community of Copperfield Townhomes boasts numerous updates and a spacious open feel with vaulted ceilings and additional natural lighting and views exclusive to the end units. The kitchen features all new appliances, solid oak cabinets, beautiful quartz countertops, an elevated countertop with additional storage on the back side, and a convenient pantry closet. Beyond the kitchen is the finished lanai, with AC and a large storage room, or step out to the screened-in porch where you can enjoy a relaxing cup of coffee and early morning breezes. The half bath, an interior laundry nook with New full-sized washer and dryer, and the spandrel under-stair storage closet complete the downstairs. Upstairs you’ll find a split bedroom layout with the master bedroom and second bedroom being separated by a bonus space which is perfect for a home office or game room. Both bathrooms upstairs feature new shaker-style vanities with beautiful quartz countertops. The second bathroom offers a walk-in shower with new contemporary tile, while the master provides a tub/shower combination. The spacious master bedroom suite boasts a walk-in closet as well as a wall closet, a linen closet, and two nice-sized windows. Other notable features include a newer water heater (2020), new A/C unit, updated electric, new water softener system,gorgeous wood-look laminate flooring throughout, stylish baseboards, chair rails, full-sized washer and dryer, ceiling fans, and ample closets & storage. The well-manicured Copperfield Townhome community is pet friendly (with restrictions) and offers a sparkling community pool, sidewalks, and maintenance-free Florida living. Take advantage of plenty of parking with one assigned space at your front door and guest parking nearby. Centrally located with easy access to the Veterans Expressway, shopping, restaurants, Tampa International Airport, and beaches, this charming home offers both comfort and convenience.  Don’t miss out. Schedule your private tour today! $299,900 Active

7524 Hollowell Drive Tampa, Florida

2 Beds 3 Baths 1,396 SqFt 0.020 Acres

Look no further! This stunning block home is the epitome of what you've been searching for. Meticulously maintained, it boasts 2 bedrooms, 2 bathrooms, plus bonus add-on rooms. With granite countertops in the kitchen, ceramic tile throughout, and a 2023 roof and A/C, this home offers both style and substance. Freshly painted inside and out, it exudes charm with beautiful stone detailing on the exterior. Enjoy the convenience of no CDD or HOA fees, and relish its prime location just minutes from the highway for an easy commute, close to Tampa International Airport, fine dining, and fabulous parks. Don't miss out on the opportunity to make this income-producing property yours! $379,000 Active

2405 Durham Street Tampa, Florida

2 Beds 2 Baths 1,488 SqFt 0.110 Acres

Welcome home to this lovely open concept townhome in North Tampa. As you walk in, you'll be greeted by an updated open style kitchen, which is not typical for this community. Washer and dryer are located inside the townhome for convenience. Upstairs you'll find two spacious bedrooms each with their own bathroom. Flooring has been updated throughout the home. Lighting has been updated as well with LED lighting in some areas. Another rarity, is a wood burning fireplace which is located on the living room. This townhome offers a rare backyard space which is chic and spacious. It's a perfect place to hangout and grill. The backyard is also fully fenced in and has a storage closet. The community offers a pool and tennis courts as well as ample parking for both residents and guests. The HOA takes care of all exterior and community maintenance. This unit has a newer roof and siding! The location is ideal with easy access to I-275. $260,000 Active

13813 Stone Mill Way Tampa, Florida

2 Beds 3 Baths 1,261 SqFt 0.040 Acres