Myth 1: I can wait to get preapproved. This is not the case. Meeting with a lender is the first thing you should do if you are considering moving in 2019 unless you’re paying cash for a property. The way a bank calculates your buying power is all that matters, so make sure you know what the bank says you can afford before you look at properties.


Myth 2: I need to put 20% down on a house. False. There are a several different types of loans out there that require less than 20% down. Speaking with a lending professional is the best way to learn what’s available and what you qualify for when you’re ready to buy your new home. I can put you in touch with several lenders that can help.


Myth 3: Shopping for credit rates will hurt my credit score. Not true. The fact that you are shopping around for a home is taken into account and is only seen as a single hit on your credit. You can shop around with multiple lenders without multiple inquiries to your credit. Do all your rate shopping before signing your purchase agreement to avoid delays, rate changes or cancellation fees.


Myth 4: I have to cover the closing costs out of my pocket. Not necessarily. If you’re short on funds and cannot afford to pay the closing costs, in some cases, you can ask the seller to cover a portion of the closing cost amount by adding it on top of your offer. Another way to handle this is by increasing the interest rate. Choosing the latter will cause the monthly mortgage payment to be slightly higher but will allow you to get the house and pay the closing fees.


Myth 5:  Less than perfect credit will prohibit me from getting into a new home. False again. Don’t let this myth stop you from sitting down with a mortgage broker and discussing options. Lenders are more willing than ever to work with you. They have realized that many were hard-hit during the economic downturn in the way of job loss, foreclosure, and more.


Let me help you find the right lender and the right property.