Mortgage myths could affect potential home buyers who may think these myths to be true, and may not try to buy a home.

Have you heard any of these five mortgage myths?

  1. I Need 20% Down to Get a Mortgage. Not necessarily! There are many different loan types, and depending on your situation, you may be able to put as little as 0% down. There are even Conventional loan programs where a buyer only needs 5% down! FHA loans can go as low as 3.5% down. VA loan? Veterans may qualify for 0% down. So don’t let that myth keep you from looking into buying a Baltimore home.
  2. My Credit Score Isn’t High Enough to Get a Mortgage. Though it is true that higher credit scores can potentially open options for potential homebuyers with different loan types and interest rates, that doesn’t mean you definitely can’t get a mortgage. Speak with a mortgage professional to discuss your credit score and whether you should work on raising your score or if there are options out there for you.
  3. My Bank Will Get Me the Best Interest Rates. Maybe. But they also may not specialize in mortgages, or have products that could help you save money. Mortgage professionals, whether loan officers or brokers, may be the best route to take. It is worth speaking with a few mortgage professionals to help determine the best route for you to take.
  4. Pre-approval = Loan Secured. A pre-approval is just that – pre. A pre-approval is based on information you have provided to your lender. But once you are actually applying for a loan, there are many more steps along with much more documentation needed and required.
  5. The Loan Interest Rate is Most Important. Though securing a low interest rate is certainly important, you want to make sure that you are not being charged extra up front fees to make up for it – OR if those fees are being rolled into your mortgage, how much extra does that add? The best way to look at things is your monthly payment, and compare loan options/interest rates to determine what works best for you.

If you have questions about buying a home in Towson and what loan options may be the best for your situation, please contact me. I would love to help you move forward. I have multiple lenders that I work with regularly who can help guide you in getting a mortgage to buy a home.