Home Loans - Dispelling The Myth
By
Max Hunter
You
have undoubtedly heard a plethora of advice when you mentioned you were
considering buying a home. Everyone probably had an opinion, they
always do. Some very well intended people probably gave you the worst
advice you could possibly have received but you would have know way of
knowing that.
Let us dispel some of the most common myths about home buying and
loan selection. First and foremost the myth that the only type of
mortgage to ever consider is a 30 year fixed rate mortgage. Perhaps
when your parents or grandparents first considered buying a home this
was true. The simple fact of the matter is that there are many loan
packages available to buyers with all different financial circumstances
and needs. For many a fixed-rate mortgage will be the right way to go.
For others adjustable rate mortgages will make the most sense based on
their financial situation. Your loan officer will be able to explain
the differences between them and discuss which will make the best sense
for you and your unique circumstances.
Another popular myth is that you should have a home in mind before
you contact a mortgage professional. This is probably, however, the
worst time to contact a mortgage professional. It is always best to
start your home search only after you have spoken to a mortgage
professional who can put a scope on your search for you before you fall
in love with a home that is well beyond your financial means. A
mortgage professional can save you hours of heartache when you try to
compare a house within your means to those houses a realtor showed you
but you simply cannot afford.
The only place you want to apply for your mortgage is with your
personal bank. Or, at least that is what you will be told. Again, that
may have been true about forty years ago, it is not necessarily true
any longer. The mortgage market is competitive and there are many
lenders that specialize in precisely this industry and are not retail
banks. You may not want to close the door to the prospect of using one
of these lenders because they very often offer the best loan packages.
Online mortgage lenders are risky. That is what traditionalists
will say. Though you should be careful in selecting an online lender,
there are many safe and reliable retailers. You will want to make sure
that they have an encrypted, safe site that you can comfortable input
your information. Very often these lenders are actually a network of
lenders that combined can offer you the most possible loan packages to
choose from. It is important to know that the site is encrypted and
safe before you input your personal information. Most sites will have
information on the site regarding the measures they take to protect
your information.
If your credit is not great you will never get approved for a
mortgage is what you have probably heard time and time again. There is
an entire, tremendous industry that has been created to provide
mortgages to people with poor credit or no credit history at all.
Rather than have your friends and family deny the loan that you had not
even applied for yet, speak to a mortgage professional who has the
means to open the door to this entire world of lenders waiting for
people with little, no or bad credit.
If you do not have a big enough down-payment your mortgage payments
will be huge and you will have to pay PMI. Again, this is simply not
true. There are countless mortgage packages available to people with
little or no down-payment, including many packages that combine loans
in order to prevent your having to pay PMI (private mortgage
insurance).
The home loan industry is a vast industry that grows annually. The
key to your success in maneuvering in the industry is to speak to
mortgage professionals rather than well-intended but ill-informed
family and friends. Though your family and friends may offer good
advice, very often they just proffer myths that have long ago been
busted. We have addressed but a small number of these myths in this
article, there are countless. The best thing to do is get the
information directly from the source- a mortgage professional rather
than the people around you who may have misinformed you when they heard
you are thinking of buying a home.
About the author:
Max Hunter is the author of many
credit related articles. If you are looking for help with Home Loans or
any type of credit issue please visit us at http://www.homeloanave.com
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