5 Homebuying Misconceptions to Avoid

It’s common for both first-time homebuyers and experienced homeowners to feel overwhelmed by the process of purchasing a house. Plus, myths and misconceptions often make the experience even more confusing. If you’re thinking of buying this year, don’t let these misleading ideas deter you from your goals.

Myth #1: You need a certain credit score. While mortgage programs do have credit score minimums, you’d be surprised at how low those go. (Just know that your score may also affect the interest rate and terms of the loan.) MPG agents have resources to connect you with credit repair persons. Reach out early if this is a concern!

Myth #2: You should only buy during certain seasons or under certain market conditions. While competition may seem fierce lately, that doesn’t mean you shouldn’t buy a house. As long as you choose a home you can afford and one that will grow in value, it’s still a smart long-term investment. 

Myth #3: It’s cheaper to rent than buy. Home prices have been rising lately, but rents have jumped significantly too. Since homeownership allows you to build equity and wealth over time, it’s important to crunch the numbers before assuming you’re better off renting. Remember, the interest rate on renting is 100%.

Myth #4: You should get a mortgage from your bank. Your bank should definitely be on the list, but don’t limit your shopping to just them. Get quotes from several banks and lenders to ensure you get the best deal. Ask an MPG agent for a list of local lenders.

Myth #5: You should waive your inspection to win a bidding war. Waiving your right to an inspection might help you beat out other offers, but it can also come back to bite you. Inspections often reveal costly and even dangerous defects, and you’ll want to know about these before deciding to buy.