Purchasing a home during the holiday season is an excellent time to host the celebrations with friends and loved ones in your newly purchased house. But before you begin the home buying process, it will be in your best interest to know what the top mortgage myths are. So, to help you get started, your local Burlington mortgage broker with Loewen Group Mortgages has debunked the most common mortgage myths.
Myth #1: A 30-Year Mortgage Is Better Than A 15-Year Mortgage
This is not necessarily true; it all depends on what your financial goals are. If you wish to have a shorter amortization period and pay more per month but less in interest, than a 15-year mortgage may be a better choice. However, if you would rather have less expensive mortgage payments per month but are okay with paying more in interest over the years than a 15-year mortgage would be the best option for you.
Myth #2: Pre-Qualification And Pre-Approval Are The Same Things
Getting pre-qualified is typically the first step in the application process for a Burlington home loan. This is a quick and easy process that can even be completed online and it tells the borrower what type of mortgage they could qualify for. Getting pre-approved is a more in-depth process where your broker will sit down and extensively review your financial record. They will let you know what price range you should focus on when viewing different homes. Also, getting pre-approved will give you more credibility with seller’s then if you had only been pre-qualified.
Myth #3: Shopping Around For Different Brokers Will Hurt Your Credit Score
You can shop around and schedule however many meetings you want with different mortgage brokers and your credit score will not be affected. Also, if you get pre-approved, you have no financial obligation to get your mortgage finalised from the broker who pre-approved you. Instead, you can take your time meeting with multiple different brokers to see which one will offer you the best deal for your financial goals.
Myth #4: You Need To Have Perfect Credit
There are multiple different mortgage options available for those who have poor credit and a low income. Your Burlington mortgage broker should not turn you away because you have a less than perfect credit score, but instead, they should share the different options available for you. Also, it is okay to be in some form of debt and still get approved for homeownership.
For more information on some of the top mortgage myths or if you would like to begin your application for a Burlington home loan, please contact the Loewen Group Mortgages team at 289-337-4029.