Don’t you think it’s funny that as soon as you decide to buy an Orange County home, everyone seems to have advice for you? Be wary of what you hear, which includes internet advice! Your best bet is to contact us, your Orange County real estate team, or a local mortgage lender, so you obtain home-buying advice straight from a professional source in the area.
False mortgage advice is everywhere. Realtor.com put together a list some of the most common mortgage tips that are wrong, and dangerous to your future. See if you’ve heard any of these, and learn why they have been debunked:
Myth 1: Don’t bother getting pre-approved. You just started shopping for an Orange County home, so why waste your time getting pre-approved? While it might not be officially what you’re approved for later on, it will help you avoid issues while you shop for a home. One, you’ll know what budget you should shop in, so you won’t fall in love with a house you can’t afford. Two, you’ll have an up on other buyers who aren’t pre-approved. Sellers will feel more confident choosing you in a bidding war.
Myth 2: Just get your mortgage from the bank you have an account at. This is the easiest option, since you’re already familiar with the bank, and they’re familiar with you. But just like with shopping for a home, you should shop around for a mortgage loan. While this is more work, it means that you might find more favorable terms elsewhere, which could save you tons of money in the long-run.
Myth 3: Always go with the lowest interest rate. In theory, the lowest interest rate means the lowest monthly payments, right? Not always. Some lower rates come with strings attached. For example, an adjustable rate loan might be the lowest option right now, but it could come with a price shock down the road. Also, some low rates require more money per month, and lower down payments might require insurance. It’s smart to carefully consider all of your options.
Myth 4: Borrow as much as you’re approved for. True, a bigger loan means you get to buy a bigger and better home in the Orange County real estate market. But, the sad truth is, sometimes you’re offered more than you can actually afford, especially once you take other costs into consideration, like property taxes, repairs, utilities and so on. It’s always smarter to live slightly below your means, so you’re ready for financial curveballs or repair needs.
For more myths and details, check out this Realtor.com article. When you’re ready to buy an Orange County home, or to ask questions about the home-buying process, contact us! We’re your Orange County real estate team, standing by, ready to help you each step of the way.
