You might not have applied for your home loan yet, because you believe in things that might not be true. This is the problem that many people have. They believe in home loan myths that they are reading online, and then they are too afraid to apply for their mortgage loan.
With these three myths busted, you will know what is true and what isn’t. Making your decision to get a home loan so much easier.
You need to debt free in order to get an approved home loan
This is one of the biggest myths that people believe. They think that you can’t get an approved mortgage loan if you have any debt. That you need to be completely debt free before you can qualify for a loan.
This isn’t the truth. As long as you can afford the loan, and you have a good credit score you have a good chance of getting your mortgage approved. If you have money left after the premium and other debt, you might get your home loan approved.
You can only use a bank for a home loan
In order to get a home loan, you need to use a bank to apply for your mortgage. No other banking institution or lender can give home loans. This is what you heard, and now you don’t know if this is really the truth or not.
This is actually just a myth. You can get your home loan from anyone that is willing to lend you the money. And, as long as you get a contract from the lender. Private lenders can be sometimes a better option because their interest rates are lower than a bank. However, it’s recommended that you are applying to banks and private lenders. See who is willing to approve your application and who is giving you the better rate.
It’s almost impossible to get your home loan approved
You don’t apply for a home loan because you heard that getting it approved is almost impossible. That only the rich and famous can get a home loan approved.
No, this isn’t correct. Anyone can have their mortgage approved. It just depends if you can afford the repayments, what your credit score is, and if you have a down payment or not. It’s a myth that only certain people will get a home loan approved without any problems.
These are all myths that aren’t true. Myths that people are making up and ensuring that people are too afraid to get a mortgage loan. This is why you need to make sure about all your facts before you decide to rather rent than buy a home. You might be holding back just because a myth that you believe, isn’t true.
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