It’s considered one of the defining events of a person’s life and the fulfillment of the American Dream. Home ownership is certainly something people strive for and being a first time home buyer or purchasing a dream home is a milestone in your life. But sometimes idealizing the dream of home ownership gives off the impression that it’s more difficult to achieve than it actually is. Don’t get us wrong. You need to be ready to assume the responsibilities that come with owning property, but there are plenty of myths out there about being able to buy a home and what you need to do to secure a home loan.
Cliffco Mortgage Bankers is Committed to Helping Clients Buy Homes
At Cliffco Mortgage Bankers our mission is to help people achieve the dream of home ownership. We’re committed to our clients and we want to help them sort out the facts and fiction. So we want you to know about some common myths about home ownership and correct the record.
MYTH: Your First Step is Finding the House You Want
Many people think that you should start your property search by finding the dream home you’re looking for. It’s a better idea to get your financing ready. “It’s highly recommended that you meet with a trusted mortgage loan originator before you even start to look for homes,” Mark Kuchikan an Indiana based mortgage broker tells WXIN-TV. You want to know early on what kind of mortgage you’ll qualify for. Looking for a home that you may not be able to afford or you may not qualify for the mortgage needed for purchase is wasted energy.
MYTH: You Need To Be Able to Provide a 20 Percent Down Payment
A 20 percent down payment is considered by many to be a strong recommendation. It does have advantages. The most well-known being that you can avoid having to buy private mortgage insurance (PMI), according to realtor.com. A 20 percent down payment will also help you get lower interest rates but you can get loans at lower rates. Lenders will offer loans with 10 percent or 5 percent down if you’re willing to buy PMI. There are also loans available from the Federal Housing Administration that will allow you to go as low as 3.5 percent down.
MYTH: You Need to Go With a 30-Year Mortgage
The 30-year mortgage is the loan that most home buyers opt for. But you should only take out a 30-year loan if it makes sense for you. Sure, you’ll save money on your monthly payments on a 30-year mortgage, but you’ll actually save more money over the life of the loan if you opt for a shorter term like a 15-year-mortgage. Of course, you have to be certain that you’ll be able to consistently afford the higher monthly rates you’ll come up with on a 30-year mortgage.
Cliffco Will Help You Understand Your Options
As you can see, there are many different mortgage options and many paths to get financing to buy your home. Don’t listen to the myths, get the facts. Come to Cliffco Mortgage Bankers and we’ll go over the options that can help you achieve the dream of home ownership. Contact us today.