Finally ready to make the transition into home ownership? That's awesome, and in this exciting time you can be turning to friends and family for an insight into the process. However, there seems to be a circulation of misinformation spreading around, so I am here to clear up a few myths.
THE FIRST STEP IS SEARCHING FOR A HOME
You know the saying, "Don't put the cart before the horse," well that's important to remember when it comes to buying a home. You don't want to start looking for a house until you have gotten to sit down with a lender and discuss what the bank will qualify you for. If you fall in love with a house that's $250,000 and come to find out you're only qualified for $200,000 you can get your hopes crushed and waste a lot of time. Don't start the process on the wrong foot and make sure the numbers line up.
YOU DON'T NEED A REAL ESTATE AGENT
For starts, when buying a home, 99% of the time the buyer's agent gets paid by the sellers. That random 1% can be for odd circumstances. So you're getting to use the services of a real estate agent for free. Having a real estate agent on your side means you'll get to see homes that aren't as readily available on public searches, you avoid outdated listings and scammers (there are lots of them), and you have protection when it comes to navigating the legalities of contracts and buying a home. Why wouldn't you want an awesome negotiator working to ensure you get the best from the transaction? For FREE!
YOU CAN'T BUY A HOME WITH BAD CREDIT
Fortunately for some, this is a myth. Lenders and banks come by the hundreds of thousands and all though there are a few loan options, a lot of lenders can work with credit scores down to the low to mid 500's. There are a lot of factors that go into approvals, but your credit doesn't have to be a sore thumb during the process. However, you will be doing yourself a favor if you work with a lender to get on a plan to at least get those numbers in the 600's. A better score will lower your interest rate.
YOUR DOWN PAYMENT MUST BE 20%
Think you need to sell an arm and a leg to buy a home? Not at all! An FHA loan only requires 3.5% down. There are a lot of programs that can potentially help you with down payment assistance or be 0% down mortgage. USDA and VA loans are the most popular 0% down programs. If you qualify, this can take a big chunk off the amount of cash you have to bring to the closing table.
Now that you have some knowledge to get the process started, contact me and I can help you get through the process as smoothly as possible.
Providing a superior level of informed, professional real estate services to buyers and sellers throughout Central Minnesota. From Maple Grove to St. Cloud, we have professional Realtors ready to assist! Residential & Commercial Real Estate, Sauk Rapids Real Estate, Sartell Real Estate, Waite Park Real Estate, Rice Real Estate, St. Joe Real Estate, Foley Real Estate. Milaca Real Estate, Litchfield, Maple Grove and surrounding communities. Whether you're looking at buying or selling home in St. Cloud, multi-family units in Sauk Rapids, land in Rockville or any property in Central Minnesota, we are the dedicated professionals to call for your needs. Premier Real Estate Services has offices located in St. Cloud, Milaca, Litchfield, Hutchinson, and Maple Grove.
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