Misconceptions People Have About Buying a House

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Common untruths people assume about home buying.

 

Purchasing your first home is an exciting time. You’re close to having your own property where you can paint, decorate, and design as you please. But before you dive into the world of house hunting, we bust some common misconceptions which could hinder your first purchase.

 

You need a 20 percent down payment to get a mortgage.

While this used to be true a few decades ago, that’s no longer the case these days. The FHA will back a loan where the borrower has a 500-579 credit score or higher and a 10 percent down payment.

 

It’s cheaper to rent than it is to buy.

Rent prices continue to skyrocket, making the cost of renting about the same as a mortgage payment would be. There are much higher up-front costs associated with home buying, such as the down payment, closing costs, and mortgage insurance. However, over the course of four or five years, buying is cheaper than renting.

 

You don’t need a home inspection on newer homes.

Believe it or not, but even new homes need a home inspection. Home builders make mistakes, some even cut corners or rush jobs overlooking poor work. Even if the property you’re looking to buy is brand new, you should always get a home inspection so that you know of any issues that could hurt your finances down the line.

 

When you’re looking to protect your new property, contact your insurance professionals at American Premier Insurance. Our dedicated experts are ready to assist you with all your home insurance needs in Phoenix, Tucson, and beyond.