If you’ve let it slip out that you’re considering buying a new home in New Jersey or Pennsylvania, you may find yourself on the receiving end of a lot of friendly (and unsolicited) advice. Dealing with advice you didn’t ask for is bad enough, but when that advice is wrong, it can really affect your buying process. 

Still, there’s no shortage of opinion when it comes to buying a new home. You’ve probably heard the adage: “Everyone is entitled to form their own opinion, but nobody gets to make up their own facts.” Let’s look at a few common home buying myths and see how they stack up against the facts. 

Shop for the Home of Your Dreams and Then Get Your Loan

At first glance this seems like good advice. After all, how do you know how big a loan can get if you don’t know what the house costs? In reality, you need to take a more reasonable and responsible approach. How much can you really afford? It can be devastating to fall in love with your dream house and then find out you don’t qualify for the loan needed to build it. Figure out what you can actually afford each month and let that guide you in your home selection.  It doesn’t take that long to determine what you’ll qualify for. Then you won’t waste your time looking at things that aren’t in your budget. By the way, this works both ways. You don’t have to settle for less home than you want just because you don’t think you qualify. Focus on looking for homes that fit your budget and your lifestyle. If you haven’t already chosen a mortgage company to work with, check out Country Classics preferred lenders. Our preferred mortgage lenders are always happy to answer questions about their latest offers and incentives – everything from reverse mortgages to low down payment plans, and will be happy to get you pre-qualified for a loan that will fit your budget. 

You Must Have Perfect Credit in Order to Purchase a Home

That’s not exactly true. What is true is that the better your credit score, the better rate you’ll qualify for. But you don’t have to have perfect credit in order to qualify for a mortgage loan. 

Your Best Deal on a Mortgage is a 30-year Fixed Loan

This may be true for some people, but not for everyone. If you plan to stay in your home a long time, a 30-year loan helps keep your monthly payments down. But if you plan to be in the home for 5-7 years, a 7-year fixed rate loan may make more sense. The longer the loan, the higher the interest rate. Your monthly payment may be higher, but the total amount you spend on the house could be less. 

The Lowest Interest Rate Gives You the Best Deal

Again, on the surface this seems to make sense. But sometimes there are fees that impact your overall cost. Make sure the low interest rate on your loan isn’t being offset by additional fees. 

Your Down Payment is Your Only Upfront Cost

Some homebuyers are taken by surprise—closing costs can be between 2 to 5 percent of the purchase price of the home. Another thing to keep in mind is that you’re probably going to want to furnish your new home. Window coverings, paintings, and other decorating items aren’t part of the cost of the home, so you’ll want to keep enough in reserve to cover those expenses. 

If you’ve already established what you can afford and want to begin the search for the home of your dreams, we invite you to check out our website to learn about our latest new home opportunities at Country Classics!