Many millennials are now at the age where they are earning enough to afford numerous investments, one of which is purchasing a home. However, for young first-time buyers, navigating the world of real estate can turn out to be a bumpier ride than expected. They may not know what to believe, especially conflicting bits of advice here and there. Finding a trustworthy agent and a qualified mortgage broker in Phoenix is important but being familiar with the home buying myths before embarking on the home buying process can save you a lot of trouble down the road.
- Myth 1: Lenders Dictate How Much You’re Allowed to Spend. This is true to an extent. Lenders will tell you explicitly how much money they can grant for the loan based on the scoring system that considers your credit history, income, assets, debt, and how much the home appraises for. However, the decision on how you should spend that money is up to you, so it’s essential to consider all expenses. The last thing you want is to spend your money on a dream home, only to be left with nothing for repairs and maintenance.
- Myth 2: Agents Can Do Inspections Alone. While your agent certainly can, it doesn’t mean that they should. Professional home inspections give potential homeowners the opportunity to learn about the house’s inner workings, including its mechanical systems and estimated longevity. Insist on a written report after the inspection, whether you’re exploring a new or lived-in home. Attending all of them is the only way to really see if you’re getting what you pay for.
- Myth 3: It’s Easy to Figure Out the Final Cost of the New Home. This is considered a myth. Most first-time buyers tend to underestimate how much maintenance and repairs cost, particularly for single-family homes. This includes all the little details, like your upholstery and furnishings. A survey showed that buyers of new homes ended up spending around $10,000 on average on top of their final home’s cost. You should also anticipate the costs of lawn care, snow removal, driveway care, and others. Take note of the appliances, systems, and parts of your home you’ll be maintaining and replacing and factor all of this in the final cost before taking out that home loan.
- Myth 4: There’s No Need to Be Present for the Final Walk-Through. This is false as you need to make sure that the house is in the same condition as you last saw it. Final walk-throughs are also your chance to ensure that what the seller agreed to leave behind has been left. Don’t close unless you’ve attended the final walk-through yourself.
- Myth 5: The Home You Buy This Year Is Worth More Next Year. This is a myth as you can never be 100% certain with home valuations. You can follow predictions but remember that home prices are never set in stone because there’s no telling what might happen in the near future and beyond. A perfect example of this is the past year’s market prices which drastically changed due to the COVID-19 pandemic. It’s also worth remembering the financial and housing market crash of 2008. With a trusted mortgage company, you can make better predictions and decisions on home prices and how much they’ll be worth in the next year.
Home Buying in Phoenix With Desert Springs Mortgage
Mitch Stam of Desert Springs Mortgage shared this, “Going through the process of buying your first home can be confusing, to say the least. Familiarizing yourself with these myths and consulting with your mortgage company can allow you to make better decisions about when to buy a home, the expenses you can expect, and all other factors to consider.”
Being a millennial homebuyer doesn’t have to be the daunting task that it seems to be as long as you’re well-equipped with the right professionals who can separate facts from myths.
Desert Springs Mortgage is a full-service mortgage brokerage that provides clients with a wide range of professionals through realtor partnerships and excellent customer service. For mortgages in Phoenix, FHA loans, VA loans, asset-based lending, commercial lending, reverse mortgages, and other financing options, call the team at (623) 432-1309!