You need a down payment of 20% to buy a house.
Nonsense. Hogwash. And poppycock. While a sizeable down payment will help bring down your monthly mortgage payment there are plenty of loan options out there requiring as little as 3% down and in a few special cases 0% down.
You should always choose the lender with the lowest rate.
Always is a strong word. The lowest rate in town might be an awesome opportunity. It might also have quite a few hidden fees. Before you go with the lowest rate you see, we highly suggest that you ALWAYS do your homework.
Buying a home is a life sentence.
A life sentence of awesomeness, maybe. Not to mention financial freedom and consistent year after year increases in value. But you’re not handcuffed to it. You can sell anytime. Or, make it a rental property that earns you extra money every month.
You don’t need a real estate agent.
You don’t need a dentist to pull a tooth either. But who’s going to ask you to open wider, please? A realtor is your advocate, local market expert and negotiating ninja all wrapped up into one. We recommend using a realtor and never doing your own dentistry.
Adjustable-rate mortgages (ARM) are always a bad idea.
There’s that pesky word always again. Under the right circumstances, an adjustable-rate mortgage is a great loan option. For example, if you only plan to be in your home a few years an ARM could save you big time on interest.