Every market in the world has a lot of misconceptions, and the real estate industry is no exception.There are a lot of home buying myths, including ones about credit scores, home inspections, financial stability, and the process itself.
Gunjan Goel, director at Goel Ganga Developments has talked about the most prevalent misconceptions and their debunking should be known to the citizens. Therefore, The five most prevalent home-buying misconceptions will be discussed, along with their respective debunkings.
Myth 1: Your Down Payment Must be 20%
It is untrue, despite what many people may tell you, that a house loan requires a 20% down payment. While some lenders need a 20% down payment, the majority of lenders only require a 5–10% down payment. It is a prevalent mistake concerning purchasing a property. A larger down payment includes advantages, including EMI reductions that improve your credit score and loan eligibility.
Myth 2: Your Credit Score Must Be Perfect to Buy a Home
Another one from home buying myths is you can not buy home if you have bad or low cibil score. Since a credit score is evidence of your past behaviour and capacity to repay loans, it is crucial for loan approval. Your chances of receiving a loan will be decreased by a low credit score, as it indicates “not-so-good” financial health. Nevertheless, a variety of home financing organisations offer loans. Poor credit scores are quite frequent in developing nations like India. This is why these lenders provide home loans to borrowers with poor credit ratings. Additionally, there are programs and government agencies that offer financial assistance to those in need who meet specific requirements so they can build dwellings.
Myth 3: You Must Pay off All Your Debt First
If your current loan is being paid off and you would like to apply for a new one, it is feasible, and a lot of individuals carry it out. Applying for a new loan is possible if you are making all of your EMI payments on schedule and have a steady source of income. Multiple debts are normal, and you can file for further debts if you have the money to pay off your current obligations. Good credit and enough money are all you need.
Myth 4: You Do Not Need a Home Inspection
A house inspection is unnecessary and a waste of money, according to a lot of individuals. It is true that home inspections are crucial, as they are performed by experts who are able to identify even the smallest flaws, giving you the upper hand when negotiating the price of the property in question. A home inspection will ensure higher returns by providing you with an accurate assessment of the property’s value and simplifying the house-buying process.
Myth 5: All Home Buying Experience Are the Same
The process of purchasing a home will never be the same. Every house is unique and the bargain that is provided differs depending on a number of criteria. The experience of buying a home is impacted by a number of factors. These factors include location, property style, financial situation, and the home-buying procedure. Seldom will this event repeat itself. The experience of buying a property will never be exactly the same twice.
There are many more misconceptions surrounding house purchasing, but the facts are different and were covered above. These myths are predicated on certain ideal conditions or scenarios encountered by a small number of purchasers. Obtaining mortgage insurance is something you should think about if you’re looking for a house loan. Because of the protection it offers, all borrowers can greatly benefit from it.
