Are you aware of the truth behind mortgages, or have you believed any of these top #MortgageMyths?
Here’s your chance to test what you know:
MYTH : Getting pre-qualified is the same as getting pre-approved.
Nope! Pre-qualified means you took a couple minutes to fill out a questionnaire about your financial situation. However, getting pre-approved takes much longer and involves a lender to analyze your financial status. It must be completed before you purchase a house.
MYTH : I need a credit score of at least 600 to purchase a property.
Actually, the Federal Housing Administration (FHA) requires a score of 580. And you can also use a co-signer to help with your chances of being approved. However, your home buying process will be much easier if you do have a good credit score, so try to still be diligent about payments and loans!
MYTH : You need to put 25% down on a house.
While this was true years ago, in today’s era, you can get a loan for as little as 5%. Or, if you qualify for an FHA or Veteran’s Administration (VA) loan, you could pay as little as 0% to 3.5% down.