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  • Writer's picturekellyzrealtor

10 Things Buyers Get Wrong About Mortgages Today

If you’re looking to buy a new home, make sure you don’t believe any of these 10 common myths that buyers often believe about mortgages today:


1. Focusing Too Much on the Interest Rate: Buyers often get stuck on getting the lowest rate possible. But there are other aspects of the loan, such as fees, terms, and overall costs that deserve just as much attention.


2. Assuming They Need 20% Down: Many loan programs allow for lower down payments, such as FHA loans with as little as 3.5% down and VA loans with $0 down for veterans.


3. Thinking They Can Get a Loan Instantly: Securing a mortgage takes time and preparation. Lenders require documentation, verification, and a review of your financial history.


4. Assuming Pre-Qualification = Pre-Approval: Pre-qualification is an estimate, while pre-approval involves a comprehensive review of your finances. Pre-approval carries more weight when making an offer!


5. Not Considering First-Time Homebuyer Programs: These programs offer so many great benefits like down payment assistance, lower interest rates, and reduced fees.


6. Not Checking Their Credit Score: Before starting the buying process and applying for a mortgage, always check your credit score! A good score can mean better terms and lower rates.


7. Choosing the Wrong Type of Loan: There are many loan types out there, each with its own terms and requirements. Research each type and make sure you get the right one for you!


8. Understanding the Fees: Mortgages come with a range of fees. Working with a transparent lender who explains all fees can help avoid surprises at closing.


9. Not Being Prepared for a Possible Low Appraisal: Buyers should have a plan in place if the property appraises lower than anticipated.


10. Not Shopping Around for the Right Lender: Each lender offers different terms, rates, and programs. Always compare offers from multiple lenders to ensure you get the best mortgage.


Now you know how to avoid these mortgage myths!

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