Mon. May 20th, 2019

Property: Busting old home buying myths

home buying mythsToday’s property market is different from what it was years ago. Some of the rules that used to apply simply do not anymore.

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 If you are shopping around for your first home, you will need to steer clear of the misconceptions and inaccurate information out there.

There are some common myths about buying a house that could be quite discouraging for the first-time home buyer. Unwinding those home-buying myths can make your first home buying experience successful.

If you want the best deal in property, buying or selling, chat to us at PropertyFox.

Here is a look at some of the common myths

You can only apply for a home loan from a bank

While banks are the traditional “go-to” for home finance, SAHome Loans is an independent, specialist mortgage provider that has been operating in South Africa since 1999. They offer flexible lending solutions, at competitive interest rates, and have helped over 100,000 South Africans with their residential loans.

A 30-year loan is the best option

While most first-time buyers opt for a conventional 30-yearloan, it is not the only choice worth considering. A 15 or 20-year loan provides an excellent way to spend less money on interest. You will just need to make sure that those plans fit within your budget. A shorter loan term means higher monthly payments, so you must be sure that you can afford the addedcost.

It is cheaper to rent than to own a home

If you look only at monthly outflow, this is usually true, but it is temporary. Rents tend to rise over time, whereas your fixed mortgage payment does not. If you buy a home now, within a few years your monthly housing payment could be less than your rent would be.

My home loan application has been denied: my dreams of buying a home are over

This is false. The biggest reason for a bond applicationbeing denied is an applicant’s low credit score. Credit providers use this score to ascertain an applicant’s credit worthiness. Credit worthiness has to do with your history of credit and debt repayment and how much of a financial risk your prospective credit provider will regard you to be. Once you get your credit score in order, try applying for that loan again.

Paying off debt before buying a home

It might be a good idea to pay off all your debt, but it might not be, depending on your circumstances. If your credit scores are good and you have plenty of income for the loan you need, it might be better to conserve cash and use it for your down payment. Your mortgage adviser should be able to guide you on this.

Now that that’s hopefully cleared up some of the more common misconceptions about buying a house, do not let home buying myths stop you! When it is the right time in your life to buy a home, it is time to buy. Do your homework, consult with experts and go shopping!

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