5 Misconceptions About Home Buying

11 September 2015
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Category: Real Estate
11 September 2015, Comments: Comments Off on 5 Misconceptions About Home Buying

 

  1. You should see what’s on the market before seeking professional guidance.

It is our experience that new home buyers start looking at properties online about 7 months before they are ready to actually buy one. There’s nothing wrong with clicking around the internet in the name of research! But, the truth is you are going to find a property you love and then lose it to a represented buyer because it takes time to get preapproved and purchase ready. We encourage people to first use your research prowess to find a real estate agent and mortgage lender you trust before getting your feet wet in the market. The benefits these working professionals provide you through the process are insurmountable.

 

  1. You should wait for the economy to return to its former “glory”.

For maximum profits, all the savvy investors with loads of cash to blow have been buying up properties for the last 6 years. With that said, it’s still a great time to buy due to the interesting place the economy is in right now. Home values are at an acceptable level for sellers wanting to unload, so there are a lot of people testing the market. Also, interest rates on purchases are still at record lows due to the fed waiting for international uncertainties to play out. We have seen a frenzy since mid-summer in our market, and the market is still holding strong. You shouldn’t hesitate much longer to make buying a home a good financial investment for you. Remember that talking to a professional and getting all the facts about your specific situation does not cost you a dime.

 

  1. It’s cheaper to continue renting than to buy.

Rents are at an all-time high right now, especially for people in single family homes. Due to current interest rates, monthly mortgage payments are more affordable now than they were before the housing bust. This is true nationally, but even more so in California where homes are in high demand. You could spend more than 10% less money over the course of a year on a mortgage payment! This money goes into your own equity rather than someone else’s investment, so you can run the number longer term to see exponential savings!

 

  1. You need to commit to settling down in an area before purchasing.

We have heard all the objections to home buying there are, but this one is so common you’d think it was written into the human hardware. Truthfully, people end up selling and making money off a home a quick as two years down the line, so buying a home does not necessarily tether you to that place for life. We aren’t trying to sell you a home if you feel you are at a place where job security is an issue, but 90% of what most of us worry about never comes to pass. As long as the numbers work in your life, buying a home is the smart thing to do with your money. You can sell it later or keep it as an investment when you are ready to move.

 

  1. Owning homes are only for rich people.

Everyone’s situation is different, and neither we nor any of our lending partners are going to encourage you to buy a home you don’t want to live in or can’t afford. With that said, you don’t have to be rolling in piles of doe to make a purchase happen. There are a plethora of assistance programs that are available to help, and it doesn’t cost you anything but time trying nail down which programs work for you. All you can do is get the facts before making a decision, which is why we encourage people to talk to a professional before wasting time looking at homes not in your realistic price point. The risks for the buying process are low, and there are many safeguards provided by your agent that will make sure the home is right and you are ready. We work in customer service, not sales, but we can’t say the same for many of our competitors.

 

 

Call today for a free, no-risk consultation!

562-754-1333

 

Author: Kevin Long, executive assistant

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