There are a lot of misconceptions about what it takes to get a mortgage in this market, particularly with buyers new to the mortgage process—and buying into those misconceptions can cost you a lot of time, energy, and, in some cases, money.
So what, exactly, are the most common mortgage misconceptions?
A recent article from realtor.com outlined some misconceptions many buyers have about securing a mortgage in this market, including:
Applying for a mortgage is a quick and painless process. Getting your mortgage approved can be a long, drawn-out, and tedious process that can add weeks (or even months!) to your home purchase—particularly in this market, when many lenders are processing a high volume of applications. Anticipate that the process may take a while—and, on your end, do your best to speed things up by being as organized and timely as possible with your lender’s requests.
You are guaranteed to secure a low interest rate. Many lenders are still advertising crazy-low interest rates—but securing a rate like that typically takes near-perfect credit and a sizeable down payment. When applying for a mortgage, make sure you have realistic expectations around interest—and don’t waste time looking at houses that are out of your price range based on the idea that you will get a low interest rate.
You don’t have to pay anything out-of-pocket to get a mortgage. Most mortgages have a variety of upfront fees and costs (like closing costs)—so, if you are applying for a mortgage, make sure you set cash aside to cover those out-of-pocket expenses.
If you are considering a home purchase and want to discuss your specific scenario, let's connect. We will listen and provide you with several lenders to speak to that can help you make all the right decisions about your home loan.