Real Estate Truths: by Cheri Sperling
02/05/2011 06h53 ● Published by Brian O
Real Estate Mortgage Myths – What Have YOU Heard??
The Real Estate Agent that represents you in this real estate market may be the BEST one to recommend you to a hard working lender as well. Did you know the mortgage plays an enormous role in determining the overall cost of housing? Did you know that buyers and sellers all need solid information to make good real estate decisions?
“It’s impossible to get low down payment loans.” – UNTRUE! FHA down payments are only 3.5% and VA is 0%.
“”It takes perfect credit to get a loan.” – UNTRUE! There is a relationship of better rates to better credit, but many issues on a credit report may be explained. The way to know for sure is to speak to a reliable lender.
“If I’ve had a bankruptcy or foreclosure, I can’t qualify.” – UNTRUE! Credit history following a short sale or foreclosure is very important and there can be extenuating circumstances. It only takes a few moments with a reliable lending professional to find out if your individual situation will allow you to qualify. It’s easy!
“Getting pre-approved is expensive.” – UNTRUE! Usually, the only expense to getting pre-approved is the cost of the credit report, which could be around $35. The advantage is that you will know that you qualify fore a particular mortgage amount.
“I should wait to qualify until I find a home.” – UNTRUE! The best interest rates are only available for the highest credit scores. It can take time to qualify for a mortgage, especially if there are issues that need to be corrected. It is to your advantage to start the qualifying process in your home search.
“All lenders are the same.” – UNTRUE! Reliable lending professionals will explain the entire process for collecting fees, quote fees up-front, have competitive products, do what is necessary to get the loan approved and close at the locked rate and terms.
“Adjustable rate mortgages are more expensive than fixed rate mortgages.” – UNTRUE! Adjustable rate mortgages an be less expensive than fixed rates if the buyer’s circumstances warrant it. There are many variables and you need to be aware of them before deciding which type of loan to finance your purchase.
The right Realtor can help you with all your real estate needs and questions. Mortgage Myths are scary and I hope I’ve helped put some of those myths behind you. Call us anytime!