Misconceptions people have about buying a home in Philadelphia – For some homebuyers, the process of acquiring a home is plagued with dread and uncertainty, but receiving the correct help and educating yourself can help alleviate those concerns. Let’s go through 5 common myths about buying a property in Philadelphia in today’s market before you get sucked into the world of home listings and open houses.
Agents Aren’t Worth the Money
While you may not require the services of a real estate agent in order to acquire a property, engaging the services of a competent and experienced real estate agent can easily be the secret ingredient that alleviates a lot of the tedious work and stress associated with the process.
You can get a better idea of who will work best with you by shopping around and meeting with a few agents. You can also pick their brains a little. Your agent’s in-depth knowledge of the Philadelphia local market will assist you in locating worthwhile properties that are reasonably priced and meet your requirements.
Also, any agent worth their salt knows how to represent their client in negotiations while keeping everything professional.
You Must Be Debt Free
Don’t be under the impression that only those without any debt have a shot at buying a home in Philadelphia.
The great majority of applicants are expected to have some debt, according to mortgage lenders. Lenders utilize the debt-to-income ratio, or DTI, to determine whether increasing your monthly mortgage payments will put you in a financial bind. If your loan is approved, the lender will use this ratio to determine your risk level.
It’s always good to attempt to pay down your existing debts prior to applying with any lenders to put yourself in the best light.
A 20% Down Payment Is Required
We will always recommend trying to provide a 20% down payment when buying a home in Philadelphia.
The rationale for this is to reduce your monthly payments by avoiding private mortgage insurance, or PMI, and to give your lender the opportunity to offer you a lower interest rate. Keeping this in mind, the 20% down payment isn’t always required.
If you’re taking advantage of a VA, USDA, or other federal loan programs, you may qualify for a lowered or no down payment while still avoiding paying PMI.
Taking the time to look into your eligibility for any loan programs can make a big difference, and should not be skipped.
Only Buy in Spring and Summer
The spring and summer months are generally when the real estate market heats up. Choosing to shop for and buy your new home during the fall and winter off-seasons, on the other hand, could save you a lot of money.
During the colder months, home inventory is reduced, but buyer competition is down as well. Taking a gamble on a desired property in the dead of winter could save you a lot of money, so don’t rule it out.
Don’t rush yourself into buying a home and give yourself some breathing room to make rational decisions while searching for that spectacular deal.
Everyone Is After Your Money
Some buyers – especially first-time buyers – can get a paranoid feeling that everyone is out to scam them at every turn.
Your agent wants you to buy a house you like so they can build their reputation with another happy client, and your lender wants to make sure they get reimbursed for their long-term investment in you. Finally, the home sellers may desire to collect as much money as possible from the sale of their home, but it’s quite doubtful that it’s for personal reasons.
Trying to keep a positive attitude no matter the circumstances goes a long way when searching for your next home, and it can turn that search into something truly enjoyable and special.
Professional Partners When Buying a Home in Philadelphia
If you’re planning on buying a home in Philadelphia, contact our professional team at (215) 385-3055!