Myth Busters: Real Estate Edition
Posted by Wendy Atherton on Saturday, January 8, 2022 at 8:58 PM
By Wendy Atherton / January 8, 2022
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Prepare to be mind-blown ?
Give this post a share if you learned something new!
THE MYTH:
You need piles of cash to buy a home.
THE TRUTH:
While 20% down will help you skirt private mortgage insurance (PMI), you can still lock in a remarkably low rate with as little as 5%, 10%, or even no money down.
THE MYTH:
You need spotless credit to buy a home.
THE TRUTH:
Poor credit isn’t unforgivable. It may take a bit more grit, but there are many options available for buyers of all incomes and credit tiers. If you keep hearing, “No!” from lenders, don’t quit. Keep trying! And don’t worry, I’m here to help!
THE MYTH:
If you don’t have children, don't worry about school districts.
THE TRUTH:
Even if you don’t have children (or your kids have flown the nest), when it’s time to sell, you’ll be in a stronger position if you’re in a good school district.
THE MYTH:
As long as your total mortgage payment is less than 36% of your income, you can afford any home.
THE TRUTH:
It’s pretty outdated — the 36% guideline. Although still used by lenders, in today’s world, most homeowners are more comfortable with a payment of no more than 28% of their monthly income.
THE MYTH:
I can try FSBO and if it doesn’t work out, I’ll list it with an agent.
THE TRUTH:
The truth is that FSBO sales accounted for only 9% of all home sales in 2020. Translation? Most homeowners don't want to go it alone in our market with multiple offers, back-to-back showings, escalation clauses, and intense negotiations.
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