Mortgage Myths

• "It's impossible to get low down payment loans." - UNTRUE! 
  FHA down payments are only 3.5% and VA is 0%.  In some areas, there may be some 100% USDA loans available.
   
• "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.
   
• "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 for 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 early in your home search.
   
• "All lenders are the same." - UNTRUE! Reliable lending professionals will explain the entire process before 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.  Ask for recommendations from recent borrowers.
   
• "Adjustable rate mortgages are more expensive than fixed rate mortgages." - UNTRUE! Adjustable rate mortgages can be less expensive than fixed rates if the buyers' 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 ARM may provide the cheapest cost of housing.

Buyers and Sellers need solid information to make good decisions.  The agent who represents you in the sales may be the BEST recommendation for a reliable lender.  The mortgage plays an enormous role in determining the overall cost of housing and you need solid information to make good decisions.