If you’re like many people who are buying a loft for sale in Downtown Los Angeles, you’ve heard all kinds of advice from all kinds of people (probably even from people who have never bought a loft before, right?).
So how do you know what to listen to and which advice is safe to ignore? Check out these common loft-buying myths that you should definitely ignore (and learn the truth behind them, too).
3 Loft-Buying Myths You Need to Ignore
First things first: Your REALTOR(R) is your best source for information on buying a loft in DTLA. It’s his job, so that means he understands the ins and outs of buying lofts – and he also has a duty to you, the buyer, that says he absolutely has to put your best interests first.
That said, check out these common loft-buying myths that are completely safe to ignore:
- You must have a 20 percent down payment
- You don’t need a home inspection
- The asking price is the price you have to pay
Let’s take a deeper look at each of these.
Loft-Buying Myth #1: You must have a 20 percent down payment.
When you’re financing your loft purchase, you might assume that you need to put 20 percent of the home’s price in as a down payment – but that’s simply not true. In fact, you can buy a home with as little as 3.5 percent down in some loan programs. If you’re a veteran of the U.S. Armed Forces, you can buy a loft with nothing down by using your VA loan.
The catch: If you put down less than 20 percent, your lender will most likely require you to buy private mortgage insurance, or PMI, which protects the lender if you default on your payments. You can stop paying for PMI once you’ve built 20 percent equity in your home. And if you use a VA loan and put down less than 20 percent, your lender can’t require you to buy PMI.
Related: What is private mortgage insurance?
You do need to remember, though, that if you put down less than 20 percent, that means you’re financing more – and your monthly payments will be higher than they would if you put down a larger amount. You might also have to pay a higher interest rate than you ordinarily would.
Loft-Buying Myth #2: You don’t need a home inspection.
Everybody needs a home inspection. Don’t think you can skip it because you’re buying a loft – you absolutely need to hire an impartial inspector to make sure you’re not buying a money pit. Your inspector will examine all the aspects of the loft that make it livable, and if he or she finds anything that needs to be fixed, you can ask the seller to make the repairs, take money off the price, or walk away from the deal.
Do not skip the home inspection!
Related: More on home inspections
Loft-Buying Myth #3: The asking price is the price you have to pay.
Unlike Target (or your favorite retailer), you don’t have to pay sticker price. Buying a home is about negotiation, and you’re free to ask the seller to come down on the price. You’re also free to offer more than what the seller is asking, such as when you’re in the middle of a bidding war.
Your real estate agent can give you the guidance you need when it comes to making an offer – and whether you should offer less or more than what the seller is asking.
Related: How to win a bidding war on a DTLA condo you love
Are You Buying a Loft or Condo for Sale in DTLA?
Call us at 213-254-7626 or get in touch with us online to start exploring your options when you want to buy a loft or condo in downtown Los Angeles.
While you’re here, check out our:
- DTLA Arts District lofts for sale
- Historic Core lofts for sale
- DTLA Little Tokyo lofts for sale
- Bunker Hill lofts for sale
- City West lofts for sale
- South Park lofts for sale
- Fashion District lofts for sale
- Financial District lofts for sale