Top 6 myths every first time home buyer needs to know

Top 6 myths every first time home buyer needs to know

The millennial generation is known for their enthusiasm, and for their prowess at researching and consuming content. This, however, has not prevented them from becoming victims of myths, especially when it comes to home buying.

This post will highlight a few myths regarding millennials and their home buying process.

Myths on Millennial Home buying process

Following are the six persistent myths on the millennial home buying process. Let’s sift fact from myth:

1.    Pre-Qualification & Pre-approval are same

Often people assume that both terms are interlinked with each other, but they’re totally different. Prequalification is verbal, pre-approved is documented. When you get pre-qualified, you give your lender the basic information about credit card and other banking accounts verbally and gain a verbal estimate for a loan. Whereas, with pre-approval, your lender takes a thorough overview into your documentation in order to assess your situation before pre-approving you.

2.    All Agents Are the Same

When it comes to taking real estate agent guidance on home buying, we often hear they’re only concerned with their commission. But in actuality, they are not. Some agents are very dedicating and loyal to their clients, highly experienced, and are committed to exploring the best opportunities for their clients. Your agent is a resource and most likely knows the neighborhoods and surrounding areas to the property you are considering.

3.    Your Income Determines How Much You Can Borrow

It is believed that the amount of money you can spend on a home only depends on your income. The simplest and the most effective way of increasing your borrowing amount is to save ahead of a purchase. These savings will come in handy as you always may have expenses that are not part of the buying process and, as often happens, you will want to purchase items for the house too. Nowadays, many lenders give multiple loan offers to pick from.

4.    Millennial Can’t Get a Home Loan

Many people believe that millennial can’t get a home loan, due to numerous factors affecting an applicant’s ability to secure a loan. The fact is, if you battle with meeting your month-to-month payments your financial assessment can be affected but there are programs to get you back on track. Plan to talk with a home loan officer as soon as possible.

5.    It’s Cheaper to Rent than Buy

Another common myth is that renting a house is better than buying it. Not at all! The status quo of the market says that rent prices are increasing faster than purchase prices, thus, it’s better to choose to spend money on a personal asset as an investment than paying monthly to your landlord.

6.    A close home Inspection Means No Repairs

Another misconception that has seeped into the mindset of many millennial is that a proper home inspection means there will be no need to repair. This is a big mistake, and you should never commit to buying a house just because the seller has had an inspection.

Before you buy be sure to talk to the experts to get the answers you need to make an informed decision. Realtors know the housing stock and market. Lenders show you what you can afford and how much it will cost you to finance a home. Inspections are important to get a good assessment of the home and potentially needed repairs or updates needed in the near future

1584 Forrest Ave Memphis Tn 38112 – $184,000

1584 Forrest Ave Memphis Tn 38112 – $184,000

 

1584 Forrest Ave Website

This 1921 Evergreen Bungalow is just a short walk to Overton Park, Levitt Shell & Zoo. Beautiful hardwood floors & light filled rooms are the reasons this house will bring warmth to your heart. Recently updated HVAC, Roof, Updated kitchen with Garage/workshop/studio, nice deck or screened side porch to enjoy a spring day. It also features an electric gate to parking pad, garage & back yard, an extra room off the back bedroom which could be a small office or roomy closet, & a large pantry off the kitchen & separate laundry.

1584 Forrest-20 1584 Forrest (4 of 15) 1584 Forrest (6 of 15)

 

Debbie Sowell  901-359-6600
INCITY REALTY  901-214-5838
2298 Young Ave, Memphis Tn 38104

 

41 Belleair Drive, Memphis TN  38104 – $849,900

41 Belleair Drive, Memphis TN 38104 – $849,900

41Belleair.com

 

Brick beauty with 4 bedrooms and 4 1/2 baths wonderfully arranged for a single family or blended family. Just under 5500 sq ft., this home was complete redesigned in 2012 by bringing it down to the studs, opening up the floor plan and expanding on this spacious lot with pool. Outdoor patio with fireplace off master bedroom, walk-in closets in all bedrooms, roll out double pane windows and all systems were addressed. This home is waiting on a new owner to continue with loving care. Showings by Appointment Only

41 Belleair-4 41 Belleair-5 41 Belleair-30 41 Belleair-28

Features:

Features: Gunite Pool; Leaded glass windows saved during renovation at front of the home; roll out windows throughout much of the home; Wine cooler in Kitchen; Wet Bar; Covered Deck off Master with Outdoor Fireplace; Gated parking; 2 Car Garage; Recessed lights throughout; Pre-wired for speakers

Debbie Sowell  901-359-6600
InCity Realty 901-214-5838
2298 Young Ave Memphis Tn  38104