The Star Team Mythbusters
Almost everyone will agree that in most cases, owning a home is financially better than renting. Many renters still believe that home ownership is beyond their grasp because they think they can’t afford it or can’t qualify for a loan. It’s frustrating to feel you don’t have enough money to save money! We find, in many cases, people are able to qualify for a loan even when they thought they couldn’t. Today, we dispel some of myths surrounding mortgages.
MYTH 1: I can only get a loan if I have near-perfect credit.
FALSE. Obviously, having good credit is desirable. And it definitely makes things easier. However, banks do have some discretion when it comes to approving a mortgage and can take into account a buyer’s entire financial picture. Credit scores range from 300-850 and anything above 670 is considered “good.” But we have seen loans approved with lower scores.
MYTH 2: I can’t have any other loans to get approved for a mortgage.
FALSE. Still have student loans? You aren’t alone. Fannie Mae guidelines allow for a debt-to-income ratio of 50% and still qualify for a mortgage.
MYTH 3: I need 20% cash downpayment to buy a home.
FALSE. There are many different mortgage products available. There are downpayment assistance programs available from a number of sources. And most homes are purchased with less than 10% down.
MYTH 4: The Star Team can help me find a mortgage product that fits my needs.
TRUE. This one is no myth. We have a number of amazing lender partners that we can recommend and we can work together to find a way for you to realize your dream of owning a home.
Now that these myths are dispelled (and one confirmed!), take the first step. Mortgage lending is complicated and it helps to have someone with the knowledge and resources necessary to navigate the process. Call or email us and we will help you get started!