Let's take look at 4 very common lending myths that are floating around out there and shed a little light on why they’re not always so accurate.  Before we do, I just want to mention that while I am a licensed real estate broker, I am not a licensed mortgage broker - and I don’t pretend to be one.  

Without further adieu...

Myth #1 - "I have to have perfect credit to get a loan.”

Truth - While there are some advantages to having good credit score - and a good lender will talk to you about what those things are, the 2017 FHA loan application guidelines now require just a 580 credit score to qualify for their 3.5% low down payment program.  There are other factors involved in getting pre-approved, but a perfect credit score is not one of them.

Myth #2 - “I have to have a large down payment saved up before I can buy.”

Truth - While a down payment does help keep the monthly payments down, you don’t have to have a large down payment saved up in order to buy a home.  There are grant and loan programs that offer anywhere from 0% to 5% down.  A good lender will go over your specific situation and find a loan type that works for you.

Myth #3 - “I’m approved for X, therefore I should buy a home worth X."

Truth - Just because you can get a loan for a certain dollar amount doesn’t mean that the monthly payments that come with it are going to be comfortable for your budget.  There is nothing worse than being house-poor.  I believe that tomorrow is built by today’s decisions so I recommend that all of my clients look not only at the total amount they can get approved for but more importantly, those monthly payments. Let's make sure that we’re setting your household up for success. 

Myth #4 - “I should wait until I’m ready to buy a house to talk to a lender"

Truth - Almost every day I chat with folks who are thinking about buying a home but are hesitant to talk to a lender because they just “aren’t ready yet”.  The lender is the person that helps you get ready!  Talk to a trusted lender 6mo to a year out from when you anticipate starting to look for your home.  A good lender will coach you through what you can do to make your credit and finances home-buying ready.  

At the end of the day, every person’s journey to getting a home loan is going to look a little different.  A good lender is going to help walk you through all of your options and help you find the best package that’s right for you.  If you’re thinking about buying and you’d like to know what your options are, let’s connect and I’ll provide you the names of a few lenders I know and trust.


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