Purchasing a home is a significant financial investment. It’s important to understand the mortgage process to ensure a seamless process. Don’t let these 5 Homebuying Myths fool you, or they could end up costing you thousands in the long run!
1. You Need Perfect Credit to Buy a Home
When seeking a mortgage, it’s important to know there are many varying loan programs available to you. Conventional loans and government backed loans have different requirements in terms of credit scores. Learn more about the potential loan types available by reading our blog, What Credit Score Do You Need To Buy a House.
2. Find a Home First, Then Worry About Financing
Don’t make this painful mistake. It is important to consult with a lender before you embark on your home buying journey. Getting pre-approved before house hunting will also make your home buying experience move seamlessly. Learn more on our blog, What to Discuss with Your Lender When Getting Pre-Approved.
3. My Debt Will Prevent Me from Getting a Mortgage
If you have student debt, then homebuying is not off the table for you!
4. Making Large Purchases BEFORE Closing Will Not Affect Your Homebuying Process
Your credit gets pulled right before closing to confirm your credit score is still the same at the time of loan commitment. Any big purchases or transfers of assets will be flagged, and might affect the outcome of your mortgage closing! Before making any financial decision while under contract, consult with your loan officer.
5. You Need 20% Down to Purchase a Home
Contrary to popular belief, there are many programs available that offer different down payment options that require little to no down payment. Explore the variety of loans and learn more about the common misconception on our blog, Is a 20% Down Payment Really Necessary To Purchase a Home?
If you’re looking to start your homeownership journey, contact one of Direct Mortgage Loans’ expert Loan Officers. Ensure a seamless process and increase your homebuying confidence by enrolling in our FREE Homebuying Courses!
