Buying a home is one of the most significant investments most people make in their lives. It can be a daunting process, especially for first-time buyers. Unfortunately, many people hold onto certain myths that can make the process even more complicated. In this blog, we will bust some of the most common home buying myths 2023 and provide you with the information you need to make informed decisions. So, let’s understand all possible home buying myths in India before you buy new flat Mumbai or anywhere else in India.
You Need a 20% Down Payment to Buy a Home
One of the most common home-buying myths in the residential sector in India is that you need to put off 20% of the buying price as a down payment. While a larger down payment can lower your monthly mortgage payments and make you eligible for better interest rates, it is not necessary. Many lenders provide programs that allow buyers to put off as little as 3 percent or 5 percent. However, always remember that a smaller down payment might mean you have to pay for personal mortgage insurance (PMI).
You Can’t Buy a Home with Bad Credit
While having good credit can make the home-buying process more accessible, it isn’t impossible to buy a home with bad credit. There are multiple options available for people with less-than-perfect credit, which includes FHA loans, which have lower credit score requirements. However, it’s necessary to note that a lower credit score might result in higher interest rates and bigger monthly payments.
You Can’t Buy a Home if You’re Self-Employed.
In case you’re self-employed, you may think that you won’t be able to get a mortgage. However, that is not necessarily the case. While it may be tougher to prove your income, there are options available for self-employed individuals, such as stated income loans or bank statement loans. These loans typically bring higher interest rates, but they may be a viable choice if you cannot provide traditional income documentation.
You Should Always Go for a 30-Year Mortgage
Most people assume that a 30-year mortgage is the best choice, but that isn’t always the case. While a 30-year mortgage may have lower monthly payments, it also asks you to pay more in interest over the life of the loan. A 15-year mortgage, on the other hand, might have higher monthly payments, but you’ll pay less in interest and build equity faster.
You Don’t Need a Home Inspection
Some buyers may be tempted to skip the home inspection to save money, but that can be an expensive mistake. A home inspection can uncover potential problems with the home that may not be straight away visible. For instance, water damage, mold, poor ventilation, pipe leakages, faulty wiring, roof problems, or other plumbing issues, and heating or cooling defects. Skipping a home inspection could lead to unexpected and costly repairs down the road.
Buying a new home in 2023 can be a complicated process, but it doesn’t have to be. So, you can simply dispel these common home-buying myths and make more informed decisions to steal the home buying deal with all your doubts cleared. Always keep in mind to do your research, ask each question you find important, clear all the doubts, and work with professionals who can help guide you through the process. You can also check out Indextap for an extensive array of rental flats in MMR that are listed for sale and rental purposes.
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