Myths for A First Time Buyer
As you might have guessed, there are a lot of myths surrounding the home buying process! Because laws, regulations, and standard practices change somewhat frequently, we find that information that first time buyers have received (usually from their parents) may be a bit outdated.
The biggest myth involves the amount needed for a down payment. Many young buyers are under the impression that they’ll need to have 20% of the purchase price (in cash, at settlement) in order to purchase a home. Luckily, this isn’t true!
The good news is that buyers typically need 3.5% of the purchase price as a down payment. And if you’re active-duty or a military veteran, or purchasing in a rural area, you may be eligible to purchase with 0% down! In addition to the down payment, you’ll also be responsible for paying closing costs, which includes fees such as a transfer tax and title insurance. These fees can get hefty, but you may be able to have the seller pay for these closing costs through a seller assist.
EveryHome agents love working with first time buyers! There is no such thing as a silly question, so please be sure to reach out to your EveryHome agent for more information. We’re always available at theoffice@everyhome.com