Purchasing Breckenridge real estate can be one of the most exciting times of your life. But, conversely, the process of buying real estate in Breckenridge can also be one of the most stressful times of your life. There are so many resources out there telling you to do this and do that, and the thought of trying to absorb all of this information can be quite overwhelming to say the least. Additionally, or should I say unfortunately, there is also a lot of widespread myths out there that could ultimately influence your decision. So, what do you do and what do you believe? Well, here we attempt to give you the most common myths you may come across when buying a home so the process becomes a tad bit easier … especially for all you newbie buyers out there!
Myth #1: It is More Expensive to Own a Home Than to Rent
This statement is not true. If you don’t believe me, do the math yourself. Mortgage rates are fixed, while your rent may vary. In most markets this will be the case, but ultimately it will all depend on the state of the market at the time of your intended purchase, the region you plan to buy in, and the type of mortgage you want to apply for. However, you will be able to get real numbers for all of this and not fall into the trap of “common beliefs.” Be sure to study this all before believing falsehoods that can affect your future lifestyle.
Myth #2: Lenders Want to Make You Wait … And Enjoy It!
While we cannot climb inside the head of every individual lender out there to find out what they’re thinking, the fact of the matter is that the process of reviewing your application just takes time. Verifying your income, employment and property value will most likely take more time than you initially expect. So, to stay informed, ask your lender to give you the information that you require.
Myth #3: The Seller is Required to Make Repairs Cited in the Inspection Report
The seller does not have to do anything unless it is stated clearly in a signed agreement. However, you will have enough information at your fingertips from the inspection report that will be of use to negotiate the final price based on those needed repairs.
Myth #4: The Asking Price is Also the Selling Price
This may or may not be the case. This will depend on both the buyer and seller of the property. The buyer can make an offer for an amount, but the seller has the choice of whether or not to accept that offer. They may stick to the asking price until the home is sold or they may decide to lower the price. You may hear lots of confusing information about this, so the key is to not leave anything unclarified. Just ask your real estate agent for help.
Myth #5: Get the Biggest Mortgage That You Can
In this case, bigger does not necessarily mean better. A larger mortgage will mean that your monthly expenses will be more than they need to be, so just plan on getting the mortgage that you know you can afford. Expanding your budget too much will end up adding unnecessary stress to your life and ultimately affect your lifestyle in the process.
So, debunking these five myths will not only help you save money in the long run, but will keep your stress level low during the home buying process. The best practice is to do your research and hire an experienced Breckenridge real estate agent to help you make the right decisions.
By Reid Tulley
Coldwell Banker Mountain Properties