Setting the Record Straight on the 3 Biggest Mortgage Myths

Getting a mortgage isn’t as scary as some people make it out to be. The problem is, there are so many myths out there about getting a mortgage that many people are afraid to even try. We don’t want this to be the case for you. Buying a home shouldn’t be something you’re afraid of doing.

We’re here today to set the record straight on some of the biggest myths about mortgages. We hope that by sharing these with you, you’ll be less overwhelmed with the home buying process.

Myth #1 Your Quoted Rate is Your Actual Rate

Quoted rates are actually quite fluid. That’s because rates are directly related to the daily trading of mortgage bonds, so the lender’s rates are apt to change based on the day (as well as throughout the day, too).

It is, however, important to get a quoted rate because it will steer the entire process of your home shopping experience. You will get your quoted rate during the pre-approval process, but it doesn’t necessarily mean this is the rate you will end up with. This quote will be used to help you and your realtor decide which homes you can afford. You never want to look at homes that are more than your rates allow you to afford.

However, if you get a quoted rate that you love, there is a possibility that a financer can lock the rate in for you. To do this, you’ll need to be up front with your financer and be able to provide all of the necessary documentation.

Myth #2 All Lenders Have the Same Fees

Fees for appraisals and credit reports vary depending on the lender that you are using. Lenders are actually in a very competitive market, so sometimes they may be willing to negotiate the price of your fees just to get you to choose their company. Don’t let the fees of one lender scare you away from buying a house. If you don’t like the quote they give you, you can always check with another lender in the same market for an estimate.

Myth #3 If My Spouse Has Bad Credit We Won’t Be Approved for a Loan

Just because your spouse may have poor credit, doesn’t necessarily mean that you can’t get a home loan. When lenders are determining your mortgage they will take you and your spouse’s credit scores from three different credit agencies. Then, they’ll take the middle score of each and use the lowest of the two to determine your mortgage rate. In this way, just because your spouse might have poor credit doesn’t mean you can’t necessarily get a home loan.

If you’re considering buying a home this year, but aren’t sure about the process, we highly recommend that you watch our First Time Home Buyer Series. You can find the first video in the series here. It will help to answer any questions that you might have about the home buying process. Or, if you’re on the edge of applying for a mortgage but still have a few more personal questions, we highly recommend that you send us an email today. We would love to answer any questions that you might have directly.