Max K. Nosrati

Buying a home is a big commitment, and it’s important to get the right information before making such a big decision. Like anything else, do your research beforehand. There are plenty of misconceptions when it comes to real estate and where you should spend your money but I am here to help.

Myth 1: You should get pre-qualified for a mortgage loan after closing on your house.

Fact 1: Early in the process, you’ll want to get pre-qualified for a mortgage loan. It enables you to move swiftly when you find the right home, especially when there are other interested buyers. It also indicates to the seller that you are serious and can afford to buy the property. A pre-approval is a simple calculation done by a mortgage lender that tells you the amount you’ll be able to finance through a loan and what your monthly payment will be. Another figure that lenders use to evaluate how much you can afford is the housing expense-to-income ratio. It is determined by calculating your projected monthly housing expense, which consists of the principal and interest payment, property tax payments and insurance premiums on your new home loan (also known as PITI). Use Century 21's Mortgage Calculator, Refinancing Calculator, and Amortization Calculator for insights.

Myth 2: You need at least a 20% down payment.

Fact 2: A common myth is that the more money you put down, the less you’ll have to borrow and the easier it will be to get a loan. While this is ideal, there are other options as explained in The US News article, Alternatives to Putting 20 Percent Down on a Home. Each buyer is unique, and a mortgage professional can help you find out just what you can afford. Your income and debts will typically play the biggest roles in determining your price range. It’s simple to make an estimate – just run the numbers for yourself using our Affordability Calculator.

Myth 3: Buying is always better than renting.

Fact 3: Some people argue that renting is throwing away money. However, there are instances where it would be better to rent. You have to consider the housing market, the price of repairs and maintenance, property taxes, school taxes, mortgage, and more. Compare your options with the Renting vs. Buying Calculator.

I am ready to make a commitment to help you capitalize on current market opportunities and assist you in making an informed decision. I can help ensure you make the right choice for the long term, get a better understanding of different neighborhoods, schools, and market conditions, find a mortgage specialist, and more!