Six Common Misconceptions Regarding Home Loans
A twenty percent down payment is not required. There are many loan programs that allow little or even no down payment.
You do not need stellar credit to qualify for a home loan. Most loan programs are looking for 640 and above although some go down to 600.
You do not need to pay a fee to repair or improve your credit score. For instance, if your credit report is pulled through Credco, they provide a free consumer dispute line for you to start a case file. Then you fax items to have your report amended.
It doesn’t take a long time from loan application to closing. As long as you are cooperative and send in what is needed in a timely manner, things should move along smoothly. It usually takes 45 days for a refinance and 45-60 days for a purchase.
You don’t need a lot of money to purchase a home. With some loan programs, you can get into a home with about $1200 out of pocket. The sellers can pay all of your transfer taxes, closing costs and pre paid escrows.
Home prices and interest rates are still very low. A quick search on realtor.com shows ample inventory of homes at very affordable prices. Low purchase prices coupled with low interest rates makes for very inexpensive housing payments.
Bottom line- If you are thinking about purchasing or refinancing, now is the time to call a local, trusted loan originator to check out your options. With 30 year fixed rates in the 4.5% range, it makes sense to inquire now rather than later.
Provided by: JoAnn Moore, Licensed Mortgage Professional, Multi Million Dollar Loan Originator, Certified Military Housing Specialist, The Mortgage Market of Delaware, Georgetown, Delaware. 302.855.1306, 302.236.1229 MMODJoAnn@aol.com