4 home buying myths

Know how to separate fact from fiction before you purchase a new home.
1. Having too many lenders check your credit score will hurt your score.
As long as the inquiries are made within a 30-day period, they will only count as one inquiry on your credit report, which won’t hurt your credit score.
 
2. You can’t buy a home without putting 20% down.
While putting at least 20% in a down payment may save you from needing private mortgage insurance (PMI), numerous types of loans are still available (even popular FHA loans) with a smaller down payment.
 
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3. Adjustable rate mortgages are always a bad idea.
It’s true that taking on an adjustable rate mortgage leaves you open to the prospect of your interest rate (and therefore your mortgage payment) increasing. However, in some instances, such as when you know you won’t own a home for a long time, adjustable rate mortgages may offer a lower rate in the short term, saving you money.
 
4. Not having a real estate agent will save you money.
A real estate agent’s commission—even an agent representing the buyer—is paid by the seller and typically built into the selling price of a home. A real estate agent can help you understand important aspects about a home, its neighborhood and competitive properties. Not using one doesn’t guarantee you that the seller will automatically decrease the price of their home.
 
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