Six Common Misconceptions Regarding Home Loans

By
Mortgage and Lending with The Mortgage Market of Delaware

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      

 

 

Posted by

JoAnn Moore

Comments (1)

Trisha Bush-LeFore
Preferred Properties Land & Homes - Walla Walla, WA
Providing Realtor Services in the Walla Walla Area

JoAnn,

Thanks for sharing with us the six common misconceptions regarding home loans. This is very helpful information that I will definitely share with my clients.

Aug 02, 2013 02:29 AM

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