Deciding to purchase a home is a big decision! Today we are here to debunk the top home buying myths that our home buyer clients have!
Myth #1: You must have 20% for your down payment
False! Between the rising cost of living in our area and the growing amount of student debt that many prospective buyers are carrying, it seems like it is getting harder and harder to save 20% for a downpayment! While it is true that putting 20% down helps you to lock in a lower interest rate and avoid monthly mortgage insurance, don’t despair if you don’t have that much saved. There are tons of loan programs in Virginia, Maryland, and DC (especially for first time home buyers) that are specifically designed to help YOU overcome this hurdle! Working with a reputable local lender is a great way to begin exploring if you qualify for these programs.
Myth #2: Renting is cheaper than buying
Not always! Sure, it’s true when renting a home that you don’t have to worry about home maintenance, expensive repairs, or potential monthly association dues. However, it can be a great stress relief to ‘lock in’ your monthly housing payment rather than facing a rental increase year after year. There are also some hidden ‘gems’ in our area that continue to offer greater value than renting. According to Apartmentlist.com’s March 2019 rental report, Arlington County has seen a 3.6% yearly rental increase. Currently, the median 1 bedroom rental rate is $1,779 and the median 2 bedrooms rental rate is $2,055. To put this in perspective, with a 5% downpayment you could afford a home that is $325,000 for that same monthly cost!
Myth #3: I can’t afford a Realtor
False! Many first time home buyers think that they have to come up with money for their down payment, closing costs, AND commission to work with a Realtor. When in reality, the seller most often pays the commission for you to work with an agent in our area! There are only a few rare instances where this would not be the case and this would be communicated to you up front. So don’t fear! Working with an experienced Realtor is absolutely affordable and can make the whole buying process much less stressful.
If you are looking for more information about buying a home, be sure to download our exclusive Guide to Buying a Home or 703-CALL-KAY to set up a one-on-one consultation today!