July Market Update: 85254 - "The Magic Zip Code"Many in the real estate industry here in the North Valley often refer to the 85254 zip code as the "Magic Zip Code". Now, some will snicker and gag a
Debunking Myths To Home Buying
DEBUNKING MYTHS TO HOME BUYING:
Finally ready to make the transition into home ownership? That's awesome, and in this excitingtime you can be turning to friends and family for an insight into the process. However, thereseems to be a circulation of misinformation spreading around, so we're here to clear up a fewmyths.
1. THE FIRST STEP IS SEARCHING FOR A HOMEYou know the saying, "Don't put the cart before the horse," well that's important to rememberwhen it comes to buying a home. You don't want to start looking for a house until you havegotten to sit down with a lender and discuss what the bank will qualify you for. If you fall in lovewith a house that's $250,000 and come to find out you're only qualified for $200,000 you can getyour hopes crushed and waste a lot of time. Don't start the process on the wrong foot and makesure the numbers line up.
2. YOU DON'T NEED A REAL ESTATE AGENTFor starts, when buying a home, 99% of the time the buyer's agent gets paid by the sellers. Thatrandom 1% can be for odd circumstances. So you're getting to use the services of a real estateagent for free. Having a real estate agent on your side means you'll get to see homes that aren't asreadily available on public searches, you avoid outdated listings and scammers (there are lots ofthem), and you have protection when it comes to navigating the legalities of contracts and buyinga home. Why wouldn't you want an awesome negotiator working to ensure you get the best fromthe transaction? For FREE!
3. YOU CAN'T BUY A HOME WITH BAD CREDITFortunately for some, this is a myth. Lenders and banks come by the hundreds of thousands andall though there are a few loan options, a lot of lenders can work with credit scores down to thelow to mid 500's. Get in touch with an agent to help you connect with the right lender who canhelp you potentially approved. There is a lot of factors that go into approvals, but your creditdoesn't have to be a sore thumb during the process. However, you will be doing yourself a favorif you connect with a credit repair specialist to at least get those numbers in the 600's. A betterscore will lower you interest rate.
4. YOUR DOWN PAYMENT HAS TO BE 20%Think you have to sell an arm and a leg to buy a home? Not at all! An FHA loan only requires3.5% while a conventional only requires 5%. There are a lot of programs that can potentiallyhelp you with down payment assistance or be 0% down mortgage. USDA and VA loans are themost popular 0% down programs. If you qualify, this can take a big chunk off the amount of cashyou have to bring to the closing table.
5. DOWN PAYMENTS ARE THE ONLY UPFRONT COSTThis is one of the biggest misconceptions. There is a lot of cost that goes into buying a home,and that includes upfront costs. One of the mandatory ones are a termite and appraisal. If you aregetting a mortgage, the home will have to appraise and get a letter stating there are no termites inthe home. Termite can range between $25-$75 dollars. An appraisal can range from $300-$700dollars. Aside from your down payment, you then have to pay for closing costs. And NO, theyare not the same thing. Closing costs can range anywhere between 3-6% of the purchase price. Incertain markets, this can be negotiated for sellers to cover by rolling into the offer price, butwhether that decision is smart to do or not when it comes to landing your dream home will needto be discussed with your agent.Now that you have some knowledge to get the process started, get in touch with an agent whowill help you get through the process as smoothly as possible.