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Home July 23, 2019

Six Mortgage Myths

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The Member One Mortgage Team takes on six of the most common myths they run into while helping homebuyers!

1.“I need to put 20 percent down.”

Fact: There are other down payment options.

Many homebuyers can qualify for a low or even no-down payment mortgage. Ask your lender to go over your options with you.

2. “Cash is best for closing.”

Fact: Certified funds are required for closing.

Due to government regulations, your lender needs to be able to determine the source of the funds being used. Certified funds could be a cashier’s check or a wire transfer from your bank account.

3. “One little late bill won’t matter.”

Fact: Your credit score reflects ALL your bills.

On-time payment is a major item on your credit report. Pay every bill on time, every month—especially if you plan to apply for a mortgage in the foreseeable future!

4. “Veterans automatically qualify for VA mortgages.”

Fact: They need to meet certain requirements to qualify.

If you served in the military, you may be able to get a zero-down payment VA mortgage—but you will need to qualify for payments and have acceptable credit.

5. “My loan is based on my current income.”

Fact: It may be based on a two-year average.

If you’ve earned variable pay, like commissions, bonuses, or freelance income, your lender will consider your income over the past two years.

6. “My loan is based on my business’s total earnings.”

Fact: It’s based on net income after expenses.

If you’re self-employed, check the bottom line of your income schedule to get an idea of how much house you can afford. Still unsure? We’ll be glad to review your taxes with you!

And the biggest myth of all: getting a mortgage has to be complicated! We help people become homeowners every day, and we know how to keep things simple—from the application process to closing day and even beyond!

Connect with a Mortgage Expert

Click here to set up an appointment with a Member One mortgage specialist.

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