With the plethora of information one can find on the internet about real estate, today’s home buyers tend to be fairly knowledgeable about the home-buying process. However, there are still a few points of confusion, a new survey by Zillow of 1,000 potential home buyers finds.
Here are the five main areas of confusion the survey revealed:
- Mortgage insurance: 41% of buyers think they will have to purchase private mortgage insurance, regardless of the amount of their downpayment.
- Reality: Buyers only need to purchase PMI if their downpayment is less than 20 percent of the home’s purchase price.
- Reality: That’s the purpose of a home inspection; an appraisal estimates fair market value.
- Reality: Lenders require home-buyers to purchase homeowner’s insurance.
- Reality: Historically, home values in a normal market appreciate by 2 to 5 percent in a year.
- Reality: The purchase and sales agreement is the beginning of the closing phase, but it can be a long process until they finally take ownership.
Source: Zillow Inc.
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