At PrimeLending, we make the process simple, clear and timely. Below, we’ve debunked some of the common myths about the home-buying process.
Myth: You have to have a down payment that is equal to at least 20% of the home’s sale price to be approved for a home loan.
Fact: PrimeLending offers lending options with as little as 3.5% down or even zero down with programs such as those offered by USDA. *
Myth: You have to pay off all your debt in order to qualify for a new home loan.
Fact: Though paying off debt is helpful, you do not need to pay off all your debt to qualify for a home loan. PrimeLending offers programs that allow higher debt-to-income ratios with compensating factors.
Myth: You have to have a high credit score to qualify for a home loan.
Fact: At PrimeLending, we have loan programs to suit a wide range of credit scores.
Myth: If you lock an interest rate, you are stuck at that rate even if rates improve.
Fact: PrimeLending provides a float down option so if rates do improve you might be able to float down your current rate to a lower rate. †
Myth: Contacting a mortgage lender should be your last step in the home-buying process.
Fact: It is never too early to contact a mortgage lender to discuss getting prequalified or preapproved and learn more about the steps in the mortgage process. Before you begin looking at different neighborhoods and homes, your first step should be to talk with an experienced mortgage lender you can trust.
*This summary is based on a $125,000 loan amount, loan term of 360 months, interest rate of 4.25%, annual percentage rate of 4.453%, and monthly payment of $615.
†Float down option may require additional fees and restrictions. Please contact your PrimeLending loan officer for more details.