Common Myths of Applying for a Mortgage

Norm Plumstead

Facts Myths written on a chalkboard.jpeg

The Fact of the Matter…

You Can Overcome the Common Myths of Applying for A Mortgage

Homeownership is still part of the American dream for many of us. Now with mortgage rates still at historically low levels and home values consistently appreciating, buying a home becomes more of a serious consideration. However, there are still common myths about applying for a mortgage that hold some of us back from attaining our dream of homeownership. Let’s look at these common myths of applying for a mortgage, because the fact of the matter is…they are just myths.

Myth No. 1 – I will not qualify

There surely may be reasons why you will not qualify for a mortgage…but there are just as many possible reasons why you can quality. It’s always best to let a qualified mortgage lender determine if you will qualify for a mortgage. The fact of the matter is – if you don’t qualify today, a qualified mortgage lender will help you set up a plan so you can qualify.

Myth No. 2 – I don’t have enough time on my job

It is true that you do need to show that you can make your mortgage payments. Having a proven, steady income is one way to show your credit worthiness. The fact of the matter is – a qualified mortgage lender will look at your financial history and determine how much time you need on the job…and if you need more time…they can set up a plan so you can qualify as soon as possible.

Myth No. 3 – I don’t have enough credit

Many of us simply don’t understand how credit works and how we attain credit. It’s best to sit down with a qualified mortgage lender and let them walk through a credit report with you. Oftentimes, credit is established with a utility bill in college or a credit card. The fact of the matter is – if you don’t have enough credit, your qualified mortgage lender will give you suggestions on establishing your credit and set up a plan for you to qualify for a mortgage.

Myth No. 4 – I can’t afford to buy a home

Typically, if you are paying rent to someone else today, chances are likely you can afford a mortgage payment. See our blog Rent vs. Buy to explore your possibilities. The fact of the matter is – a qualified mortgage lender can pre-approve you for a mortgage and let you know if you can buy a home and how much you can afford.

Myth No. 5 – I don’t have enough for a down payment

We often hear that we need at least 20 percent of the purchase price of a home for a down payment. And in most cases, it is a good idea to put down as much as you can afford because it will reduce the amount of your mortgage; and therefore, your monthly payments. The fact of the matter is – if you don’t have 20 percent for a down payment, you may qualify for a mortgage that requires less than 20 percent. Meeting with your qualified mortgage lender will help you determine how much of a down payment you will need.

When it comes to homeownership and applying for a mortgage, the fact of the matter is you can overcome the common myths today…and in the future. They are simply myths and at Honor Bank, we will help you overcome all the myths that keep you from reaching your dreams.

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