The Truth About These 4 Mortgage Myths
Maybe you’re a first-time home buyer. Or perhaps you are simply getting a lot of mixed messages about the real estate market. Either way, here are some busted mortgage myths:
Myth #1: You Have to put 20% Down
It all depends on what type of home loan you acquire! First time home-buyers might even qualify for 3% down. While VA, USDA, and Navy Federal Credit Union loans often don’t need a down payment at all.
For more information, check out our post on Home Loan Basics.
Myth #2: Renting is Cheaper Than Buying a Home
This myth often lives in the belief that you can’t afford to buy a home. In truth, it entirely depends on the market. But here are two things to remember: the first is that when you pay a mortgage, the money is going back into the equity of your home. The second, is that first time home buyers often qualify for special programs that make the market more accessible.
Myth #3: The Interest Rate is the Most Important Number
Yes, the interest rate is an important number to keep in mind. But there are many different costs to take into consideration when buying a home! Here is a guide to the expenses to expect when purchasing.
Furthermore, the lowest possible interest rate isn’t necessarily the best one:
“Your interest rate is the cost you’ll pay to borrow money. The interest rate is simply the percentage you’ll be charged for borrowing the money. It doesn’t include any other fees you might be required to pay the lender for the loan — think origination fees, closing fees, documentation fees, and other finance charges.” (Source)
Myth #4: Being Pre-Approved Guarantees You the Home Loan
In reality the sellers, the finances, and many other things can change along the home buying journey. Nothing is guaranteed until you’ve signed the loan papers. But this isn’t a reason to stress! It’s simply the process and working with a great agent you really trust can make all the difference.
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If you're interested in buying or selling a home and would like to work with someone who knows the ins and outs of Maui Real Estate, reach out to one of our experienced Realtors by calling 808.879.3402, or you can reach one of us directly from our website at www.bellorealty.com. Mahalo for choosing us!
Posted by Kaitlen Conney on
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