The ins and outs of the mortgage process aren’t typically taught in school. You know, second period after homeroom – Mortgage 101! So it’s easy to make assumptions about what the process actually looks like based on things we’ve heard in the past and what we assume. But I’m here to tell you – some of those things are straight up myths and could deter a home-buying-worthy person. So let’s set the record straight about the four biggest myths when it comes to applying for a mortgage.
MYTH #1: Applying for a mortgage will negatively affect my credit score.
When you apply for consumer credit, say, a store credit card because that discount though, it will affect your credit score, especially if you apply for multiple lines of credit within a short period of time. However, for mortgage lenders, traditional rules don’t apply. So don’t be afraid to reach out to different lenders. Your credit won’t be negatively impacted.
MYTH #2: I need a 20% down payment.
Most people aren’t aware that they don’t necessarily need a 20% downpayment. There are mortgage options that require as little as 3% down — or even 0% — depending on your situation.
MYTH #3: I have to come up with a down payment all on my own.
Speaking of downpayments, there are so many downpayment assistance programs, grants, and other mortgage programs available to make buying a home a reality for so many people, so a lack of downpayment doesn’t need to be a roadblock.
MYTH #4: I should find a house first, THEN apply for a mortgage.
Straight up: Don’t risk it. Apply first so you a.) have a solid price point to go by, and b.) so you can put in an offer before the competition does — you know, the guy who didn’t get pre-approved.
Call a Homespire Loan Officer to get the deets on what assistance programs and loan options are available to you in your particular situation. Leave all the number crunching and document stuff to us. We’re the experts so you don’t have to be.