When it comes to buying a home there are a lot of misconceptions about the process. These home buying myths often prevent people from even looking into a mortgage or purchasing a house. We've set out to squash several common myths and shed light on the realities of home buying and mortgages.
Myth #1: You need 20% down to buy.
While it is true that putting 20% down allows you to avoid paying for private mortgage insurance, it is not a must. There are various housing and grant programs available, and some even require 0% down.
Myth #2: You need amazing credit.
CorTrust Mortgage has lending products that can help you move beyond credit challenges. Don't let credit problems hold you back from speaking with our mortgage experts. After all, we are here to give you honest and practical advice based on your unique financial situation and goals.
Myth #3: Your income determines how much you can borrow.
You might be surprised to know that your monthly or annual income isn't the only factor used to determine how much you can borrow. A wide range of factors (like your credit and job history) are taken into account when determining your loan amount.
Myth #4: Contacting a mortgage lender should be your last step in the home buying process.
Contacting a mortgage lender should actually be one of the first steps you take in the home buying process. In fact, it is advised to work with a mortgage lender before you start looking at homes for several reasons. First, you will have a better idea of the price range of homes you can afford. Second, you'll avoid missing out on your dream property to someone who is already pre-qualified.
Myth #5: I'm locked into my rate forever with no options.
When you lock-in a rate, you are not able to re-lock if rates change. However, you do have options. For example, if rates go up you are completely protected from that increase. You also can refinance your loan at a later time if rates go down. Your mortgage lender will help you explore options to see if it makes sense to refinance.