Mortgages can be puzzling, but understanding the facts is crucial for a secure financial future. Let’s debunk some common myths:

Myth #1: Find your dream home first, then apply for a loan.

Fact: Secure preapproval before house hunting to know your budget and avoid disappointments.

Myth #2: Prequalification equals preapproval.

Fact: They differ! Preapproval involves a thorough review, favored by sellers. Neither guarantees final approval.

Myth #3: Buy the maximum eligible amount.

Fact: Avoid overextending; unforeseen costs come with homeownership.

Myth #4: Need a high credit score.

Fact: Lower scores can still secure loans, especially with options like FHA loans.

Myth #5: 20% down payment is a must.

Fact: Many programs offer lower down payment options, like 3.5% with FHA or no down payment with a VA-backed loan.

Myth #6: Down payment covers closing costs.

Fact: They’re separate; the down payment covers the home’s cost.

Myth #7: Always go for a thirty-year mortgage.

Fact: Explore shorter-term mortgages with lower interest rates for potential savings.

Myth #8: FHA loans are only for those with poor credit.

Fact: FHA loans are great for first-time buyers, with lenient credit score requirements.

Myth #9: Stick to a fixed-rate loan.

Fact: Depending on circumstances, an adjustable-rate mortgage may offer advantages.

Myth #10: Can’t get a loan after bankruptcy.

Fact: A waiting period applies; consult lenders for future eligibility.

Mortgage journey made simple! Collaborate with a pro real estate agent and a savvy lending officer for a smooth process.