Are you ready to take the leap into homeownership, but feeling overwhelmed by all the conflicting information out there?
You’re not alone! Many first-time buyers find themselves tangled in myths that can lead to confusion and hesitation.
Let’s clear up some of the most common misconceptions about home loans:
Myth #1: You Need a 20% Down Payment
While a 20% down payment used to be the gold standard, there are many loan options available today that require much less.
In fact, some programs allow as little as 3% down. Don’t let the fear of a large down payment stop you from getting started.
Myth #2: Your Credit Score Has to Be Perfect
You don’t need perfect credit to get approved for a mortgage. Many lenders offer options for buyers with less-than-perfect credit.
You may still qualify for a competitive interest rate even if your score isn’t in the 700s.
Myth #3: Your Debt-to-Income Ratio Has to Be Below 30%
A lower debt-to-income ratio (DTI) is definitely ideal, but many loan programs allow for a higher DTI.
Some options go as high as 45% or more, depending on your overall financial picture.
Myth #4: You Can’t Get a Mortgage if You’re Self-Employed
Being self-employed doesn’t automatically disqualify you from securing a home loan.
With the right documentation (like tax returns and profit-and-loss statements), you can still prove your income and qualify for a mortgage.
Myth #5: It’s Too Complicated to Refinance
Refinancing may seem complicated, but it can be an excellent way to lower your monthly payments or secure a better interest rate.
With the right guidance, the process can be smoother than you think.
Ready to Get Started?
Don’t let myths hold you back from your dream home. With the right mortgage broker by your side, you can navigate the home loan process with confidence.
Contact us today for a free consultation and find the best mortgage options for your needs!