There are a lot of details and requirements for the Philadelphia home purchasing process. It is not uncommon for homebuyers to make mistakes. With a large purchase transaction, there can be some big mistakes that turn into misconceptions or myths. Some of these all too common myths are costing homebuyers and leading them to spend thousands of dollars more than they need to in a home purchase.
You can’t purchase a home without a 20% down payment
This is not true. Though there are many benefits to putting 20% down on a home purchase it is not a requirement of every home loan. There are many homebuyers in Philadelphia and across the country who are utilizing lower down payment programs to help them get into a home. One of the most common is utilizing loans like an FHA loan which only requires a 3.5% down payment.
The only cost of a home purchase is the list price
There are several costs to home ownership and it is in a homebuyer’s best interest to make sure they are properly budgeting for not only the purchase price of the home but all of the costs of home ownership. What some first-time home buyers are unaware of is that a large chunk of the list price will be an out-of-pocket expense. This includes the down payment and closing costs which often go forgotten about in a first-time purchase transaction.
Beyond the purchase price is the cost to maintain the home and pay for other living expenses, like utilities, Internet services, TV services, trash services, etc. All of these things also add up and are essential for comfortably living in your home. It is good to make sure that you are able to comfortably afford not only your mortgage payment but all of the extra necessities of keeping your home running.
The lowest interest rate is always the best option
Mortgage loans come with a lot of responsibilities and requirements and it is always in a homebuyer’s best interest to make sure that they are reading all of the terms surrounding a potential mortgage loan before they sign the paperwork. Just because an interest rate may be slightly lower does not mean that it is offering the best terms over the life of the loan. You might actually save some money, taking on a bit of a higher interest rate when you read the fine print of a loan.
It is also a great strategy to check into more than one mortgage loan product. Research has shown for many years that homebuyers who shop for mortgage loan options save thousands of dollars if not tens of thousands of dollars on their mortgage loan by looking at all the options available.
Shopping without a real estate agent is better
With the recent shift in real estate commissions, some people have bought into the huge mistake of shopping without a buyer’s agent on their side. A buyer agent is a crucial expert on your team, helping you to avoid costly mistakes in finding your ideal Philadelphia home. Though it is not legally required to have a buyers agent on your side research has shown that buyers agents help their clients retain their real estate goals and help them to avoid costly mistakes like the common ones listed above.
If you are ready to find a home in Philadelphia, we have a team of expert Philadelphia real estate agents ready to help you. Agents are ready to negotiate and guide you through the steps of purchasing a home while avoiding making costly mistakes.
“Talia was a wonderful realtor to work with! She helped me find my dream apartment in a few short weeks! She was always available and we worked great together!“—review on Victory Real Estate
Contact us anytime with any greater Philadelphia area real estate needs. We are here to help our clients successfully navigate purchasing a Philadelphia home. We are also here to help clients get the best price possible when they sell their Philadelphia home..