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Requirements for mortgage applications have changed
over
time. Some factors that
in the past would have seemed
to close the door to a home loan
no longer apply.
Here is a list of some of the most common myths
about home ownership and mortgage procedures, as well as the actual facts that lie behind these myths.
Myth: You need great credit to become a homeowner.
Fact: You may still be able to buy a home with less-than-perfect credit. But consider that
the interest rate you are able to lock in may be
influenced by your credit score. In addition, always keep in mind that you can improve your credit over time.
Myth: You need to put 20% down to buy a home.
Fact: There are many types of mortgage products and programs that allow low and even no down payments. But that doesn't mean
you don't need any money to buy
a house! Remember that other costs
besides the down payment
are involved in the home buying process, such as closing costs, property taxes, moving expenses, and repairs.
Myth: If you don't have a bank account or credit cards, you can't qualify for a mortgage.
Fact: Having a bank account is always a good idea and helps you establish credit. However, lenders can approve you for a mortgage even if you don't have a bank account or credit cards. It's recommended that you keep records showing a history of payments you've made for items such as rent, utilities, and car payments, for
at least
the past 2 years.
Myth: Lenders share your personal financial information with other companies.
Fact: By law, banks and other financial institutions are
prohibited from disclosing information about you to most third parties, and are restricted in how they can use your personal information.
Myth: If you're late on your monthly mortgage payments, you'll lose your house.
Fact: If you have a financial
setback, such as an accident
or loss of employment,
and you're late on your payments, it's possible to keep your home and get back on track
with your payments
if you contact your lender early.
By letting your lender know about your hardship immediately and keeping the lender informed, you can work together to find a solution for making up for the late payments.
Myth: You can't get a mortgage if you've changed jobs several times in the last few years.
Fact: You can change jobs several times and still get a loan to buy a home. Lenders understand that people change jobs. The important thing is to show that you've had a stable income.
Myth: You can't buy a home in the U.S. if you're not a citizen.
Fact: You don't have to be a U.S. citizen; if you're a legal resident, you can purchase a home in the U.S. Proof of residency will be required at the time of your mortgage application. |
