Intimidation and lack of knowledge are some of the things that stop first-time home buyers from purchasing their dream house. While owning and buying a house takes time, money and effort, it’s not impossible especially these days wherein lots of mortgage options are available to help make it happen. We’re here to debunk some common mortgage myths to help you first-time home buyers on your journey.
Houses are No Longer a Good Investment
Homes are a matter of fact, a long-term investment that can last for years and more than one generation. With proper care and maintenance, you’re investing in your family’s future as you’re giving them a sense of security and stability by giving them a roof over their head. With all the benefits you can get from owning a home, it is more than an excellent way to spend your hard-earned money.
Only the Rich Can Afford a Home Purchase
Homebuying has never been easier nowadays. With lots of mortgage options, one can find a home loan that meets their needs and finances. You can just apply for a mortgage, pay the down payment fee and repay your lender every month which is a lot easier on the budget.
A Pre-qualification and Pre-approval are the Same
Pre-qualification and Pre-approval are two separate processes of a mortgage application that lenders often used interchangeably. In a nutshell, the first step would be a pre-qualification, and the nest is pre-approval. Lenders use these two process to determine whether or not you’re qualified for a loan. Both will assess your financial status, but pre-approval will usually require verification and documentation and even a credit check.
Mortgage Brokers and Real Estate Agents are just Additional Expenses
Purchasing a home requires a lot of hard work, time and money invested – which why you need a real estate agent and a mortgage broker. A mortgage broker will help you find the best home loan deals you can make with a Mortgage Lender El Paso that will finance your home purchase. A real estate agent, on the other hand, can help find you a house that fits your budget. Both will save you time, money and effort considerably to make your home-buying experience a breeze.
20% is the Minimum Downpayment to Buy a House
With various mortgage types available these days plus the different programs first-time homebuyers can avail, you can now be a proud homeowner even if you can only afford a lesser amount of down payment. While paying for the 20% down payment saves you from Mortgage Insurance, there are home loans you can apply for that will meet your situation.
I Need a Perfect Credit Score to Qualify for a Mortgage
You don’t need a sterling score to get qualified for a mortgage. One can always apply for a home loan even if your credit score is as low as 580. There are other factors your lender will need to consider, and it will still depend on the type of mortgage you’re applying for.