Article : Myths on Home Buying

The real estate market can be complicated. Lending companies, brokers, agents are all working hard to stay on top of the competition. They may not always look out the best interest of consumers. For instance, agents get their income from commissions on the deals they successfully close. Naturally, agents may not always look for the best interest of consumers.

If you are a home seller or a home buyer, hiring an agent to work for you may help you get better deals. However, it is your duty to protect yourself against unfair treatment. Knowing the basic things about the home buying or home selling business will shield you from getting scammed or swindled.

Let’s talk about some false notions that many people believe but are just plain myths. You may have heard about it from a friend or an acquaintance and believed it to be true. Check out the following myths in the world of real estate, and be properly informed about the truth.

MYTH #1 If you have a damaging record in your credit history such as a record of foreclosure or bankruptcy, you will never again qualify for a mortgage.

Definitely just a myth. Even if you have a record of foreclosure or bankruptcy in the past, you can still get a mortgage. If the foreclosure or bankruptcy has been filed recently, you may have to wait some time to rebuild your credit. Two years should be enough to make improvements on your credit rating and qualify you for a mortgage. Just be sure that in those two years, you have not missed or delayed any payment in any of your creditors.

MYTH #2 If you want to purchase a home, you will need a 25% down payment.

If you have a poor credit, you would need at least 5%-10% down payment ready to buy a home. Although a 25% down payment can lower your loan interest, it is not really necessary even if you have a poor credit history.

MYTH #3 Hiring more agents will help you find a house more quickly.
On the contrary, if you hire several agents, they may not give as much effort in finding you a good deal. Just make sure that you’ll hire one legitimate and reputable agent who will represent you and you’ll be fine.

MYTH #4 If you’re going to sell your property, you should first find a new home.
Not true. Finding a buyer for your property first will give you more edge on your search for your new home.

MYTH #5 The best real estate agent is the one who handles the most number of listings.
Just because an agent holds several listings guarantees you’ll get the best service. In some cases, these agents are too busy handling too many listings that they don’t have time for other clients. If you can find a legitimate agent who handles fewer clients, then you’re better off with one who can give you more time and effort.

About the Author

Liz Roberts is a freelance writer and loan consultant. The website http://www.badcreditresources.com offers resources that specialize in providing bad credit loans and bad credit cards to people with bad credit.

source : http://www.badcreditresources.com/articles/Myths-on-Home-Buying