When it comes to purchasing a new home and getting a mortgage it could be a little bit of a stressful process. It’s especially stressful if you’re a first-time homebuyer. However, there is a lot of false information out there about the process of obtaining a mortgage. Within this article, a Waltham Realtor explains 4 of the most common myths around mortgage and why they are indeed not true!
Myth #1: “Buying a home is no longer affordable.”
With inventory low and demand high, many homes on the market are selling fast. Not only are they selling quickly but they are selling for a lot over the listing price. This is why many people believe that it’s becoming too expensive to afford a home. However, a Waltham Real Estate Agent is here to let you know it’s very possible to afford to buy a home right now. With today’s low interest rates people have more buying power because rates have come down faster than home prices have gone up. With a lower interest rate, your monthly payment will be lower. This allows buyers to have a larger home price budget to work with.
Myth #2: “I can’t buy a house if I still have student loans to pay.”
Lender’s definitely take debt into consideration before approving a mortgage, however, it’s unlikely that everyone who buys a home is 100% debt-free. So while you may have student loans, car payments, etc. what matters most is your debt-to-income ratio. A Waltham Realtor can assist you with figuring out your debt-to-income ratio and then take it from there!
Myth #3: “I have to put 20% down to buy a home.”
This statement is a myth Waltham Real Estate Agents hear all the time! But did you know that about 80% of first time home buyers make down payments that are less than 20%? If you aren’t able to put 20% down, there are a lot of mortgage products that will allow smaller down payments.
Myth #4: “I should go with the lender who has the lowest rate.”
It might sound ideal to find the lender with the lowest rate, however, there are many other factors to consider when searching for a mortgage lender. Waltham Realtors also suggest finding a lender that has experience, is reliable, can get things done quickly, and can help educate you on the whole process. When it comes to making an investment this big, it’s important to go with a lender you trust and that has been successful in the past.
Contact a Waltham Real Estate Agent
If you’re looking for someone to assist you during every step of the home buying process, choose an experienced Waltham Realtor! We will help you communicate with lenders and get the best loan possible. Even if you think buying a home is too expensive, we’re here to help make it happen on your budget. Contact us today by giving us a call at 617-968-0022 or fill out a contact form and we’ll get back to you as soon as possible.
