Fact vs. Myth: First-Time Homebuyer Mortgage Loans

Are you a first-time homebuyer? If you haven’t been through the process before, it can seem overwhelming, especially with all of the information out there for easy access. But be careful – not everything you read is accurate when it comes to mortgage loans. We’re here to clarify what are facts and what are myths.

Myth: You Need 20% Down

Fact: There are loan options that do not require a 20% down payment on a home. The idea that you need that much in savings to buy a house is one thing that keeps potential homebuyers from diving in. Your loan officer can help you identify the right loans that will get you in a house, with or without 20% down.

Myth: You Need a Perfect Credit Score

Fact: While a high credit score definitely helps, one that’s down in the low 600s is not a deal-breaker. There are often options that can get you into a home loan even if your score is not 800. That said, it’s still important to pay all of your bills on time every month to build up that credit score.

Myth: You Have to be Debt-Free to Get a Mortgage Loan

Fact: Most people carry some debt, and mortgage lenders know that. Things like car loans, student loans, and credit cards are part of life.  It is important to be aware of your debt-to-income ratio, however. If you carry too much debt, it could put your chances of getting a loan in jeopardy. Pay down as much as you can before applying for a loan but talk to a loan officer to find out where you need to be to put you in a good position. 

For more accurate information on first-time homebuyer mortgage loans, don’t read articles on social media. Talk to the pros directly by contacting Midland Mortgage Corporation today.

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