Having a dream home for your family is one of the best feeling and achievement in life. In the latter part of this article you will learn what are the top 3 fallacies or misconceptions of a home buyer.
Home buying is not that simple as buying a home or property that you want. It will undergo several of transactions and you may encounter problems as well as delays during the whole process of buying your property. First you have to search your dream property; this includes property visits or shopping for a property which requires lot of your time. Second, if you are going to purchase the property through mortgage or loan, you should seek a pre-approval letter from your lender or financial institution or get proof of funds if you are using a cash payment method. Third, a home buyer should hire a buyer’s agent to aids in transaction coordination of the buying process. A Buyer’s agent also secures your rights as a buyer when presenting an offer to the Seller and so on.
Now let’s proceed to enumerate what are the top 3 fallacies of a home buyer.
- Big amount of down payment to get a property
When buying a home or property, whether, it is a cash or through loan, the down payment may vary from what type of loan you are going to use to buy a property. We have FHA, VA, Banks and Conventional. So down payment depends on what type of financing you’re going to use.
- Afraid of debts ( loan / mortgage )
People may tend not to buy home at all neither purchase a property because some of them are afraid to debts and lending money, buying a home has its advantages and disadvantages. For example, a person who is afraid of living on their own property because he or she cannot afford to buy the property on his own and are afraid of debts. This thinking should be replaced.
- Loan amount is derived based on income.
Loan amount is based on the property that you choose and then negotiate after getting the final rates and amount.
You may seek and approach financial advisers if you have the plan to create and purchase your dream home.