Are you thinking about buying your first home in Flagstaff? No doubt you’re excited about your decision, but may have some doubts about whether you’re able to make this work. There are certainly misconceptions circulating that may give you some doubts. Friends and family may be telling you things that are outdated or simply not accurate. Times change, and the housing market is certainly something that changes.  What are some of the home buying misconceptions that may deter you?

  1. You need a 20% down payment to get a mortgage.

At one time this was the case. Decades ago, you had to pay 20% - 50% down for a mortgage and needed almost perfect credit.  This obviously limited home ownership. In order to make it possible for more people to own a home, the government created the Federal Housing Administration and began offering “FHA Loans”. Today the FHA will back a loan from a home buyer who only has a credit score of 500 and a 10% down payment. And for those with a better credit score of more than 580, you only need 3.5% for a down payment! Because of this provision, more people are able to buy homes today.

  1. You Can’t Qualify For a Mortgage With Student Loans

Debt is debt, whether it’s a credit card or loans.  Just because some of your debt is a student loan doesn’t make a difference, beyond what your total debt is compared to your income. And this is what lenders look at – your debt to income ratio. What really matters is if you’re managing your current debt and can afford to add a mortgage to it.

  1. You can save money by not using a real estate agent.

This belief is simply not true. Some people may thing that using a real estate agent is going to add to the cost of buying a home. Sure they make a commission.  But the point is that the seller is the one who pays that fee, and it’s worked into the selling price of the home, regardless of whether you decide to use an agent. So why wouldn’t you use an agent if it’s not going to cost you in the end? It makes buying a home so much easier. The agent takes care of all the paperwork, appraisals, inspections, and other matters that are part of the process, so you don’t have to.

  1. It’s cheaper to buy a home that needs a lot of renovating.

Some people who watch home improvement shows may think that buying a home that needs major renovation is the way to go. If you can do most of the work yourself, maybe. But if you have to hire all the work, not to mention the time and materials, it will not be cheap. Save yourself the pain and chose the home in Flagstaff that meets your needs without all the mess of renovation.

If you’re ready to buy your first home Flagstaff and the surrounding area, we can help you make your first home buying experience a positive one.  We’re happy to answer any questions about the process and make sure you have the right information going into the home buying process. You can also search for your dream home now using our convenient home search tool