- A 30-year mortgage is the best option
Most people opt for a 30-year fixed-rate mortgage because monthly payments are lower. This can be a good option, but if you aren’t set on staying in your home for a long time you may want to consider an adjustable-rate or 15-year mortgage, which, for instance, focuses on paying down the house vs. the interest while borrowing the same amount of money over half the time period.
- You can’t buy with bad credit
For a conventional loan, yes, bad credit may hinder your options, but FHA loans, which require only a 3.5% down payment, have more lenient guidelines for borrowers with low credit scores - even under 600 could qualify.
- You don’t need an agent
You might think it’s easy to buy a home on your own, especially with today’s advanced technology, but realtors bring a much needed expertise to the table when it comes to negotiations, search power, and in-depth market knowledge to really get you the home you’re looking for at the best price.
- Just looking casually for a house is not a big deal
Even at the early stages, you should not only get pre-approved for a mortgage to know your budget, but also focus on how you will get the home you’ve been waiting for in this highly competitive market. As a realtor, I examine your resources and strategize your purchasing power in areas such as appraisal, loan and inspection contingencies. Don’t waste your time without a game plan!
- The only upfront cost is the down payment
Buyers must be prepared for closing costs--fees required as both part of the loan and standard to buying a home. You will need to set aside roughly 3% of the purchase price for closing costs which are due at closing. This non-recurring cost typically covers: taxes, fees, interests, hazard insurance premium, and more.
Kwesi Roberts is a real estate professional based in Berkeley, CA. As a part of Coldwell Banker, the #1 top real estate brokerage in Northern California, he strives to offer personalized assistance for individuals looking to buy or sell their home in the East Bay.