Are you thinking about buying a home or rental property for the first time? If you’re not familiar with the Littleton CO real estate market, the entire process of buying a home could seem very confusing and overwhelming. But luckily, most of the negative things you’ve heard about real estate are probably untrue! Here’s the truth behind these common real estate myths:
You have to make a huge down payment
Perhaps one of the biggest misconceptions is you have to put down a large chunk of money in order to get approved for a mortgage, but that’s simply not the case. If you have a decent credit history, lenders will not require that you put down as much upfront. Most real estate experts will recommend that you put down about 20% as a down payment, however, that number is not set in stone. In fact, some loans only require a 3% down payment, so as you can see, you definitely do not need to make a huge payment in order to qualify for a mortgage. However, the more you can put down upfront, the less you will have to pay back in interest, so if you have it, pay it now rather than later. Learn more about mortgages that require no down payment or a small down payment
You should never buy homes with an HOA fee
Some people shy away from homes with a homeowners association (HOA) fee because they don’t want the extra expense, but this is a mistake. A HOA is valuable, so you should see them as an asset to the home. Why are they so important? If you live in a neighborhood with amenities that are shared by the entire community, such as pools, tennis courts, and clubhouses, the HOA will ensure these amenities are kept in tip-top shape. These associations will also make sure all of your neighbors are taking care of their properties. Although you may not care about this now, this protects your investment since your home’s value won’t drop because of neighbors that have let their houses go.
Being a landlord is easy
If you want to buy a rental property because you’ve heard it’s a way to make extra money on the side without any effort, you have fallen for one of the most common real estate myths. Being a landlord is far from easy. It requires constant communication with the tenant to ensure everything is running smoothly and nothing is in need of repair. It’s your job to hold your tenants accountable if they violate one of the terms of the lease or damage your property because of negligent behavior. Although owning a rental property is a wise investment that will help you save extra cash, it does require some effort.
Now that you know the truth behind these common Littleton CO real estate myths, it’s time to connect with a real estate agent who can guide you through the process the right way. Contact us
to talk to the experienced agents at Colorado Home Sales.