Don’t Believe Homeownership Myths
Even though lenders evaluate loan applicants much differently than they did a decade ago, buyers still harbor many misconceptions about financing a home. Here are six fallacies — and facts — about qualifing for a mortgage.
Myth: You must have perfect credit to be approved for a home loan.
Fact: You may still be able to buy a home with less-than-ideal credit. And remember; you can improve your credit rating over time.
Myth: You have to make a downpa3ment of at least 20 percent.
Fact: There are many mortgage programs that allow very low down payments, or no down payment at all. With some loans, yon can even incorporate other upfront costs — such as closing costs — into the amount financed.
Myth: You can’t buy a home in the U.S. if you’re not a citizen.
Fact: If you’re a legal resident, you can purchase a home in the United States.
Myth: You can’t qualified for a mortgage if you don’t have a bank account or credit cards.
Fact: A bank account or credit card can help you establish a credit rating, but you can also provide your lender with records showing that you make your rent, utility and car payments on time
.
Myth: If you’re late on monthly mortgage payments, you’ll lose your home.
Fact: If you experience a financial hardship such as the death of a spouse or a medical emergency, it’s possible to keep your home and get back on track if you contact your lender at the first sign of trouble.
Myth: You can’t get a mortgage if you’ve changed jobs several times in the past few years.
Fact: Lenders understand that people change jobs. The important thing is to show that you’ve had a stable income.
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