5 Home Buying Myths

5 Home Buying Myths

There are a lot of myths about buying a home that are easy to bust. Here are a few of the big ones:

Myth 1

I need a 20% down payment. This goes back to the days when lenders had far fewer options. Now, you can get a mortgage for as little as 1% down and still have a low monthly payment.

Myth 2

I have to dig up a lot of paperwork. A lot goes into qualifying you for a mortgage, but these days much of the verification process — like collecting pay stubs, bank statements and tax information — can be done automatically by your mortgage broker and lender.

Myth 3

It will take a lot of time. A good mortgage broker can take your application and give you a pre-approval letter in minutes. Many even let you do it yourself online.

Myth 4

My bank is the best place to get a mortgage. Banks don’t offer many mortgage choices. An independent mortgage broker in your local community can help you find the best options and the lowest rates.

Myth 5

I need to be “settled down” first. Even with a low down payment, monthly mortgage payments are often lower than rent prices. Plus when you buy a home, you’re paying yourself, not your landlord.

Have more questions about the home buying process? Contact us today!

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