Home Buying Myths You Have to Stop Believing

Property Tax Reduction Consultants

125 Jericho Turnpike, Suite 500 
Jericho, NY 11753

(516) 484-0654 or (631) 484-0654

Finally feeling ready to take on the responsibility of being a homeowner? If you've decided to move on from renting or are looking to move out of the house you grew up in, let us remind you that not everything you hear or read will be accurate. That said, it's super important to really do your research before making any major decisions!

To help you out, today we're debunking some of the most common myths that home buyers believe - don't fall into these traps!

Myth #1: Always go with a 30 year mortgage - it's the best option.
Sure your monthly payments are going to be lower when you opt for a 30 year mortgage, but choosing a loan with a longer lifespan can just result in you paying back more in the long run. While 30 year mortgages certainly aren't bad and are often chosen by homeowners, if you really want to be smart with your money and have the funds to take on a larger monthly payment, consider all options before making a decision.

Myth #2: You HAVE to put down 20% on a house.
Putting 20% down on a home will help you avoid PMI (private mortgage insurance), but there's no rule that says you MUST put down this much. In fact, many lenders will offer loans when you put as little as 5% down - it's you who just has to be prepared for the additional cost of PMI. Additionally, you can always see if you qualify for a government-backed loan that could only require 3.5% down.

Myth #3: The asking price is always non-negotiable.
If you don't ask, the answer will always be no. While some sellers will be less willing to negotiate than others, keep in mind that the amount you offer doesn't always have to be an exact match to the asking price. Especially if your home inspection brings back concerns, there's no reason why you can't try to come up with a better deal.

Myth #4: School districts aren't important if you don't have kids.
School districts always matter, even if you don't have kids currently and aren't planning to in the future - particularly for re-sale. If this is not going to be your forever home, you have to remember that future buyers could have kids or have plans to have kids, so you can bet that they'll be looking for a home in a neighborhood with great schools.

Myth #5: As long as you have enough for your down payment, you're good.
We wish this were the case, but it most definitely is not! In addition to your down payment, there are going to be closing costs that you may have to cover (unless the seller is super accommodating and takes care of them for you). Additionally, you should expect to pay taxes and fees for inspections, insurance and more.

Something else important that we want all homebuyers to remember is that the property taxes on a home's listing are typically a summary for the current year. When homes are sold assessed values tend to change, and since assessed values are considered when it comes to property taxes, there's a chance that YOUR property taxes will be different once you live in the home.

If you'll be moving into a home on Long Island, take a close look at your first property tax bill - if you suspect that you're paying too much, it's time to file for a tax grievance.

For more information about tax grievances and how our company can help, please call (516)/(631) 484-0654 or email info@ptrc.com.