Your Ultimate Guide to Real Estate on Chicago's North Shore

5 myths about buying a home

There are many ways to receive information in 2013. This can make searching for information on home buying scary. Let us clear up some of the myths you may have you feeing Leary about home buying.

1. High Down Payment

Most people hear that they need 20% for a down payment on a home. This is completely false. And luckily so since this can mean easily having to put away thousands upon thousands of dollars before even considering buying a home. There are many conventional loans that would only require 3% or even 0.

2. Must Have Great Credit

This myth is actually false. Due to recent years of high unemployment rates lenders have taken these hard times into consideration when approving loans. Even with a low down payment it is possible to buy a home with less than perfect credit.

3. Only Get a Fixed Mortgage

False. Many homebuyers think getting a 30 year fixed mortgage is the only way to go and this is just not true. Because owners are staying in their home for just an average of 7 years, you want to look at all choices before deciding on what is best for you.

4. Don’t Use a Realtor

You may think this is a great way to save 3-5% but it is false! In most cases the realtor commission is paid by the seller. Most sellers will sign a contract with their realtor agreeing to co-broke which means a 6% commission will be paid by them and split between the listing and buying agents. Make sure you understand all paperwork when you find a home you are interested in.

5. Now is the Time to Buy

This is true. Homes are most likely going to be a strong investment over the next 10 to 20 years. If it is the right time in your life and you are financially able to, then now is the time to buy. If you don’t plan on being in your current area or job situation for the foreseeable future then you may want to think about continuing to rent until you are ready.

Thinking of moving to the North Shore? Get our Free Guide to Buying a Home on the North Shore. It will walk you through each step in the process so you know what to expect (and what pitfalls to avoid) every step of the way.

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