Top 5 Common Mortgage Myths

Getting a mortgage can be a mysterious procedure, specifically if you’ve never done it before. There’s a lot of outdated and incorrect information out there to contend with to make matters worse. Bank Hudson WI and many financial advisors and accountants tell customers to keep their mortgage even during retirement.

Here are some 5 Common Mortgage Myths

1. You can’t get a mortgage with a bad credit rating

A poor credit score can make it more complicated when applying for a mortgage, but it doesn’t make it impossible. So even if you’ve been told there’s simply no way on earth you’re going to be able to get a mortgage, it could still be viable.

There are loan options for those with less-than-perfect credit scores. However, if you’re looking to enhance your credit regardless, several steps can be taken, such as lessening the amount of debt you owe.

2. A 20% down payment is needed — no matter what

There is absolutely nothing wrong with a large down payment; that is what works best for some homebuyers. So have no fear if you can justify putting 10–20% down on your home. There are many no- and low-down-payment mortgage options to suit your needs.

3. You can’t get a mortgage if you’re self-employed

Being self-employed can make getting a mortgage in Hudson more difficult because many mortgage lenders don’t have experience dealing with people with complex incomes. However, there are loads of specialist lenders who will consider your application.

4. A lower interest rate will mean a cheaper mortgage

Everyone would choose a lower interest rate. But many factors go into your monthly mortgage repayments and how expensive your mortgage is.

For instance, if you are on a tracked mortgage, this could increase at any time, which is why many opt for a fixed-rate mortgage.

5. The down payment is your only upfront cost

While the down payment is a considerable upfront cost to buying a home, there are other things you must consider. For example, there are also closing costs to consider. These fees account for all the charges required to facilitate the transaction. They often add up to 1% — 2% of the sale price.

Closing costs are generally split between the seller and buyer. However, if you don’t have the necessary funds to pull that off, you can ask the seller to cover closing costs for you. In that type of case, though they would pay the costs upfront, your portion will probably be rolled into your mortgage to be spent over time.

The steps listed above are some common mortgage myths. There are many mortgage experts who are fully qualified with experience in self-employed, bad credit, and complex mortgages in Hudson. In addition, they have a proven track record of getting mortgages for people who’ve been rejected elsewhere.

Originally published at http://bayportbanks.wordpress.com on November 21, 2022.