Busting Some Common Home-Buying Myths

 

Dreaming of buying your first home? Here, Realtor.com dispels a few common home-buying myths and offers some tips to help you purchase the house of your dreams.

 

Myth No. 1: “I’m too young to worry about buying a house right now; there’s plenty of time”

The fact is, 40 percent of all homebuyers are 34 years old and younger and 65 percent are first-time buyers. Perhaps you’re thinking of getting married, starting a family or just tired of your current home? The market has been getting more competitive, and planning for a purchase now — even if it’s still a couple years down the road—will help you in the long run. Take time now to look at your budget and begin to explore communities that appeal to your lifestyle. Make sure to think about your hobbies, interests, lifestyle and family needs. When you’ve narrowed down your wish list, call an experienced real estate agent who knows the market and trending neighborhoods and can make every step of the home-buying process easier.

 

Myth No. 2: “I need to get my finances looking perfect first”

 

Begin saving aggressively as early as possible. Putting away some extra cash on top of your rental payment each month also can be great practice for the real feel of a monthly mortgage. Consider setting up smaller, weekly automatic bank transfers to make the saving process easier without feeling like your wallet is taking a significant hit. Use a home affordability calculator to help determine what price range you can afford in the area you would like to buy. Enter details about your income, monthly debt and down payment to identify homes within your price range. You also can find a lender online who can help you get pre-qualified quickly.

 

Myth No. 3 “I’m saving money by renting”

It may appear that renting is a lower-cost solution, but an analysis of median rents in 2017 shows that rents are rising in 78 percent of counties in the U.S. year-over-year. To better understand the financial impact of buying vs. renting over time, try using a rent vs. buy calculator.