I have answered many questions about Pittsburgh homeownership in my real estate career. Unfortunately, some of the same misunderstandings come up in conversations with my buyers and sellers. Let’ talk about some of these misunderstandings.

You only need a down payment to purchase a home.

The down payment is not the only expense of buying a home. You will need to cover home inspections, pest inspections, tax prorations, and lender closings costs. Ask your lender for an estimate of closing costs when you obtain your preapproval. Remember, this is only an estimate. Fees can change depending on the location and price of your home. In addition, property taxes and transfer taxes can be different from one municipality to another. It’s also important to account for a possible re-assessment of your home depending on the county in which you are purchasing.

I have a pre-approval letter; I can afford the home.

Investment experts recommend that you do not spend more than 30% of your gross monthly income on your mortgage payment. Your lender may approve you for more than that. Consider your lifestyle when deciding how much you want to invest monthly in your home. Suppose you like to go on vacations, eat out frequently, or have another big financial investment goal. In that case, you should not spend the maximum amount your lender will approve if you have other financial goals in addition to Pittsburgh homeownership.

You need a perfect credit score to get a mortgage.

There are many different loan programs, and there are different levels of acceptable credit scores per loan program. Credit scores run from 300 – 850. You don’t need a perfect 850 score to obtain a mortgage because there are different loan programs for varying credit score levels. Check with your lender on their acceptable credit score rates. If you fall below those rates, find an expert in credit repair. You may be able to quickly repair your credit and purchase a home within a few months.

All home improvements add value.

Expecting a home improvement to provide you with a 100% return on your investment is unrealistic. The return on investment from a home improvement varies from region to region across the US. However, you may realize a partial return on your improvement. You can learn more about how improvements affect your Pittsburgh homeownership at this website: Cost vs. Value report.

Home values always appreciate.

Predicting what will happen in any real estate market is not easy. Many factors affect the amount of appreciation you may realize in your home. The location of your home is one of the main factors that affect appreciation. You may see an increase or decrease in value depending on whether you are in a desirable or declining area. In addition, the economy and local development will affect appreciation.

Knowing what to expect, whether you are buying or selling a home, is essential. Of course, friends and family will offer their opinion. But, working with a real estate professional who knows and understands the real estate market will benefit you. As a full-time real estate agent, I study the local trends and real estate regulations to provide my clients with the most reliable information.

If you have questions concerning real estate, I’d love to have a conversation with you. In my 18 years of experience, there aren’t many questions I haven’t answered.

Contact me by phone at 412-848-3907 or email at kim.henderson@pittsburghmoves.com to schedule a free consultation to discuss your real estate needs.