Scottsdale Real Estate Agent Insights: Six Common Misconceptions In The Home Buying Process

Jenifer Wehner - Scottsdale Realtor

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When you work with a good Scottsdale real estate agent you will be aware of some misconceptions from which you will learn new real estate facts. So here are some examples of myths in the home buying process.

You Have to Give 20% Down Payment to Purchase a House

While it is true that the majority of conventional loans will require 20% down payment, some loans out there cater to various financial needs. Typically, you can qualify for a VA or FHA loan to a down payment assistance program and have as little as 3.5% or 0% down payment. Remember that when you do not pay 20% down, you will have to pay private mortgage insurance.

You Need to Amazing Credit Status

To have the best mortgage rate, you often need to have good credit. A lower credit could give you an undesirable rate and when it is low enough, it may not be possible for you to get a loan.

However, when you wish to become a homeowner before repairing your credit, you have some options. The FHA loan’s credit guidelines are more lenient than for the majority of traditional loans. You can have as low as a 580 credit score to qualify. Try to get information on this topic from your Scottsdale real estate agent.

The Amount you can Borrow is Based upon your Income

Although your debts are taken into account in terms of the amount of loan you can have, your income every month or ever year is not always a determining factor. For instance, if you make $60,000 per year with substantial credit card debt, it may be more difficult to get a bigger loan than when you earn $50,000 without debt.

Pre-Qualification is Similar to Pre-Approval

These two terms mean different things. In order to get pre-qualified, you provide the lender basic information you including your income, debts and assets so that they can identify the type of loan you can qualify for and have an estimate of how much you can borrow.

However, you will be pre-approved when the lender is ready to provide you a loan after verifying information you gave. You must complete a mortgage application after your credit rating and financial background are assessed by the lender.

All Real Estate Agents are the Same

A number of real estate agents offer better service than others, have more experience in a certain neighborhood or area, have more knowledge and have more years of expertise. An excellent Scottsdale real estate agent is acquainted with the local markets where they do a number of real estate transactions every year.

The Closing Costs are Paid by the Seller

A lot of people may have heard from friends and family that that home sellers cover the closing costs. Although this can be true in a lot of cases, most sellers will not agree to pay for them. Home buyers must recognize the amount they can offer upfront for costs like a survey fee, credit report, an attorney fee, property insurance and title service. Typically, closing costs are 2% to 5% of a home’s purchase price.

Contact reliable SCOTTSDALE REAL ESTATE AGENT, Jen Wehner today at 480-748-6925 or Jennifer@JenniferWehner.com to know more about Scottsdale homes for sale.