Facts and/or Myths

By
Real Estate Agent with Celebrity Homes 20110530
  • “It’s impossible to get low down payment loans.” – FACT! FHA down payments are 3.5% and VA is 0%. In some areas, there may be some 0% down payment USDA loans available. FNMA and Freddie Mac have 3% down payment programs.

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  • “It takes perfect credit to get a loan.” - FACT! There is a relationship of better rates to better credit but many issues on a credit report can be explained or corrected. 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.” - FACT! Credit history following a bankruptcy 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 for a new mortgage.

  • “Getting pre-approved is expensive.” - FACT! 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.” - FACT! It can take weeks to qualify for a mortgage especially if there are issues that need to be corrected. The best interest rates are only available for the highest credit scores. It is to your advantage to start the qualifying process early in your home search.

  • “All lenders are the same.” - FACT! 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.” - FACT! Adjustable Rate Mortgages can be less expensive than fixed rate mortgages if the buyer’s circumstances warrant it. If a buyer is only going to be in a home for a few years before selling, it can be determined if an ARM loan will result in the lowest way to finance the property. There are many variables and you need to be aware of them before deciding which type of loan to finance your home purchase. 

Buyers and Sellers need solid information to make good decisions. Call us with your questions or to get a recommendation of a reliable lender who can give you the real facts.

Topic:
Lending / Financial
Tags:
lending myths
celebrity homes omaha
wwwmichaeljmcglynncom

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Rainmaker
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William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

So many myths come from good intentions from relatives and back yard professionals.

Jan 08, 2017 06:23 PM #1
Ambassador
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Michelle Carr-Crowe-Top 1% Diamond Certified Real Estate Team Sells Cupertino San Jose Homes-Just Call 408-252-8900
Get Results Team...Just Call (408) 252-8900! - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

Twenty and thirty years ago, some of those were true but times, markets and practices have changed.

Jan 08, 2017 07:30 PM #2
Rainmaker
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Nathan Gesner
American West Realty & Management - Cody, WY
We don't just manage!

Michael McGlynn it's important to educate our clients and disprove the false "facts" that float around.

Jan 08, 2017 07:56 PM #3
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Rainmaker
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Michael McGlynn

Buyers Like Mike!....Find Out Why!
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