TODAY | October 04, 2013
>>> for a new home there's a lot of myths and misconceptions when it comes to buying. we called in the experts to help you out. she's the personal finance contributor for the street.com and jay is a real estate agent .
>> you'll read a statement and we'll guess if it's a buy meaning it's fact or bust because it's fiction. go ahead.
>> the first we have, your credit score is the single most important factor when applying for a mortgage.
>> i'm staying there on bust.
>> i'm saying buy.
>> oh, good. well, so it's actually a bust. there are lots of different factors that go into determining whether or not you get a mortgage. your credit score is important but so is how much cash in the bank, what your income is. the type of property you're buying. it is true that your credit score is the biggest factor when it comes to your interest rate.
>> that makes sense.
>> there's a highlight that our american heros, our vets can get 100% financing with a 620 credit score .
>> oh, okay.
>> who's next. when buying a house , the number one rule is location, location, location? buy or bust?
>> i'm saying that's an old myth.
>> i'm saying that's a buy.
>> i'm sticking here.
>> right and wrong.
>> come on. more right. yes it's a buy. you lost willie .
>> you lost willie .
>> so here's the real life scenario. i have a house for sell, 10.7 million. beautiful architect and builder built the thing right but you take the house in alpine and put it anywhere else in new jersey it's not 10.7 million anymore. location, location, location drives up the premium.
>> all right.
>> i guess you're going to sell that house then now.
>> i hope so.
>> all right.
>> okay, you should never make an offer below more than 10% of asking price .
>> i'm keeping this guy right here on the bust.
>> bust. you're right. when you're making an offer, take two things into consideration. the fair market value of the home and what you can afford. the seller might have priced the home high emotionally because they might be attached to the house . you can come in low but be prepared to justify your price. you don't want to offend the seller.
>> the best time to shop for a house is during the winter months.
>> buy or bust.
>> i just don't want to move my thing.
>> so, willie , the theory behind that is that 365, any day of the year say great time to buy a house if it's your dream home. never be the person trying to play the market wanting to move in the summer months and you miss out on what could have been.
>> don't you get better deals during the winter months?
>> you may. because there's less activity. it say little true but never pass up on your dream home.
>> not that i'm keeping score but i think i won.
>> i think you win.
>> i'm okay with that.
>> i'm not done yet.
>> we're out of time. sorry. so willie wins. lauren and jay, thank you.
>> thank you.
>> coming up next, if you have more questions you're going to stick around and you'll be tweeting with some of our viewers as well. the hashtag is buy or bust all one word. they'll answer