Facts and/or Myths

Reblogger Michelle Carr-Crowe-Top 1% Diamond Certified Real Estate Team Sells Cupertino San Jose Homes-Just Call 408-252-8900
Real Estate Agent with Get Results Team...Just Call (408) 252-8900! CalBRE# 00901962 Lic.1985
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CAR Facts Myths credit score imageThis is a helpful post to read in preparation for buying a home. 

Yes, the best advice is to get pre-approved before looking for a house.

Twenty and thirty years ago, some of these now-myths were true facts but times, markets and practices have changed.

A pre-approval will help you avoid falling in love with a house you can't afford.

A great loan consultant will help you discover what loan program is best for you.

 

Original content by Michael McGlynn 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.

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Debbie Reynolds
Berkshire Hathaway HomeServices PenFed Realty, Your Clarksville Real Estate Professional - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

These are things buyers and agents need to know. Thanks for sharing, Michelle.

Jan 08, 2017 07:46 PM #1
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Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Michelle 

Your clearing the facts and the myths.

Good luck and success.

Lou Ludwig

Jan 08, 2017 07:47 PM #2
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Steven Nickens
Elite Pacific Properties Maui - Wailea, HI
R(S)GRI ABR, Maui Real Estate Hawaii

Great information worthy of a repost

Jan 08, 2017 09:45 PM #3
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Alexander- Slocum
Adamas Realty - Vancouver Washington - Vancouver, WA
Realty Team- Vancouver WA Real Estate

Very Good Re-Blog, Michelle.  We encounter many of these myths when working with buyers, and like the way this post helps dispel them!  John and Kat

Jan 10, 2017 03:30 PM #4
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Sheila Newton Team -- Anderson & Greenville SC Real Estate
Berkshire Hathaway HomeServices - C. Dan Joyner - Anderson, SC
26 years experience -Residential Real Estate Sales

thanks for reblogging this.. not only did I miss it when posted, but it is great info for buyers!!

Jan 10, 2017 05:59 PM #5
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Michelle Carr-Crowe-Top 1% Diamond Certified Real Estate Team Sells Cupertino San Jose Homes-Just Call 408-252-8900

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