Thursday, November 15, 2018 / by Thea Limon
Myth: Only people who make a lot of money can afford a second home.
If only people who were wealthy were able to afford a house, then the majority of Lake Arrowhead homeowners wouldn’t be able to own their homes. Many loans won’t break the bank when it comes to the payments. In today’s economy, the monthly fee for paying off your house could be even cheaper than renting!
When it comes to loans, the critical part is to have a good credit score! As long as your credit score shows that you pay your payments on time, then you have a high chance of being approved for a home loan. One important fact to remember when it comes to mortgage loans is to not to make any big purchases while in the process of buying a new house.
A lot of people don’t know that if you go out and buy a car, it could throw the entire home buying process off track because of your credit score/debt to income ratio. Be wary not to open up any new credit cards. Both could negatively impact your credit score/debt to income ratio and thus, affect your chances of a loan.
Myth: Singles never own a home alone.
Don’t let the idea of being single get in your way of owning a home! According to the National Association of Realtors, 24% of home buyers were single, and 8% were unmarried couples in a 2018 Home Buyer and Seller Generational Trends Report. Many home buyers are seeing the increase in value that real estate has in the way of an investment, especially in a secondary home market.
The town draws in a lot of tourists, making it the perfect town to buy a home and rent out as a vacation rental. Families rent out houses and create lasting memories; teaching their children how to snowboard, drinking hot cocoa during a winter storm, and bonding as a family. They want to visit and not be confined to a hotel room.
It’s unrealistic for families to rent out multiple rooms and have the time together that they wanted. Relaxing with their loved ones in front of a fireplace in the front living room is a lot more memorable than sitting in a hotel room, watching TV. A consistent finding in the last four years (2014 – 2017) finds that 34 percent of home buyers are 36 years old or younger, creating a whole new market for the younger generation to invest.
Myth: You can’t buy a home without perfect credit.
This may be true for a conventional loan if you have bad credit, but there are other types of loans that will be open to your situation. Contacting a lender before searching for your dream home is the best way to go about this! If you’re unsure if you would be approved for a loan or have any questions, talk to your lender and see what they can do for you. Sometimes there are fixes that you can do to improve your chances of getting the loan you need to buy a house.
Don’t forget to see if there are other benefits (being a member of the military) or specific loans that could help you in the long run!
Myth: Every Lake Arrowhead home is a great vacation rental.
Many have the misconception that you can buy a house anywhere in town and rent it out to make a decent profit. It’s true that you can do very well on the vacation rental market, yet there are many factors to take into consideration. Not every home will be able to pay for itself on the rental market. There are different areas, characteristics, and features that define a great vacation rental. You may choose to manage it yourself or hire a management company.
There are different rules and regulations you will want to learn to be successful. It’s highly recommended that you speak with a local Realtor who is well versed in the buying and selling of vacation rental homes.
Myth: The list price is the final price.
Buying a home can mimic the process of buying a car in the way that the list price isn’t always the set price. The list price is not always the starting price for negotiations between your Realtor and the listing agent. Therefore, it’s critical for you to research for the best Realtor before you choose who will help you buy your home.
This is one of the most significant investments of your life and should be thought out carefully. There are different steps in the buying process that can end up giving you more leverage to attempt to get a price that is a win-win for all parties involved. For example, if the home inspection shows a couple of issues popping up with the house, you could ask for a credit towards the final cost to help cover the price it will take to fix those problems.
Myth: You don’t need a Lake Arrowhead home inspection.
Our previous myth helps to tell us why we should have a home inspected before buying! It’s easy to become overzealous while the market is hot, and worried about a second offer coming along. Don’t let that fear motivate you in the wrong way. You do have the option to skip the home inspection, but I highly suggest that you don’t. You could be buying a house with issues that could cause you to regret that choice later.
A home inspection covers the exterior walls, foundation, grading, garage, roof, plumbing, electrical, heating (AC in certain homes, many in the town don’t have air conditioners because of the cool temperatures), the water heater, kitchen appliances, fire safety, and leaks. After the house is inspected, it gives the buyer an excellent idea of what shape the home is in.
Myths and facts are easy to get mixed up! Don’t let it happen to you during the process of buying your dream home. The biggest myth is that you don’t need a Realtor to help you. Make sure to find an experienced full-time real estate agent that lives in the town you’re searching in. A lot of out of town agents will say they can be the best agent for you but without inside knowledge of the city, you could end up losing the house you want!
Local Realtors have inside knowledge of what will be coming onto the market, local vendors, and the best neighborhoods to buy into depending on what you are looking for. Lake Arrowhead, CA is a very different market than any other off the mountain. Be sure to hire someone who knows the market inside and out to help you achieve all your real estate goals.
The best way to know the myths from the facts is to ask an expert in that field. There are a lot of theories that end up being false. Don’t let Lake Arrowhead home buying myths stop you from buying your dream home!