4 mortgage myths you shouldn’t fall for

Are you in the market for a new home? If so, you have likely heard lots of advice on the things you should and shouldn’t do throughout the process. This can be overwhelming, and even worse, you might end up receiving tips that are untrue. Unfortunately, there are several mortgage myths out there that can hurt your buying experience. Here are some common ones to avoid!

#1 A pre-approval isn’t necessary

While a mortgage pre-approval isn’t technically required to purchase a home, it is a myth to say it is not important! We recommend treating a pre-approval as a necessary part of the buying process because of how much value it holds. Lenders and sellers strongly prefer to work with pre-approved buyers, and it also helps you throughout the process. Your mortgage pre-approval gives potential lenders a glimpse into your current financial situation. This allows them to tell you what you may qualify for in a mortgage, if your situation remains the same. It is not a guarantee of a mortgage, which is why some people may think it is a waste of effort and time. However, your pre-approval helps you prepare for your future application by telling you what you can likely afford, and where you need to make improvements. This gives you the chance to create the strongest application possible, and look into properties that meet your budget. Plus, the approval process can move quicker with a pre-approval, because your lender will already have a lot of your information.

#2 All real estate agents are the same

Real estate agents might work in the same industry, but they are not identical! Every agent has their own approach to the buying process, and their own experience with different types of buyers. You should work with an agent who has helped other buyers like you in the past. For example, if you are a first-time buyer, try to find an agent who can speak to their experiences working with other new buyers. Similarly, it’s best to find an agent who knows the area you want to buy, and understands your budget and needs. If you’re having trouble nailing down the right person, you can ask friends and family for recommendations, or turn to your mortgage broker for help! Take some time to research different agents, and even meet with them to see how well you match. You will be working very closely with this person, and must trust them to help you find the right home. It’s important that you get along and can develop a strong relationship.

#3 You cannot buy a home with debt

One of the most common mortgage myths is you can’t buy a home if you already have debt. After all, a home purchase is a huge expense, and those with debt won’t be able to deal with the extra financial burden, right? Of course, it is true that buying a home is a big commitment, and for some people, supporting mortgage payments on top of other debts may not be realistic. However, that doesn’t mean every buyer with debt is automatically ruled out. Most of us hold some form of debt, whether it be student loans, car payments, or credit cards. People who have a good handle on their current debts and can make payments consistently can still be in a good spot to buy a home. Generally, these people don’t spend the majority of their income on debt payments, and have financial wiggle room to support a mortgage. If this is the case, homeownership is certainly an option!

#4 A mortgage broker isn’t worth it

Finally, there is the myth that you don’t need to use a mortgage broker during the house hunting process. Why can’t you just use a real estate agent to find the right home, then go straight to the lender you want to work with? In theory, this could work. However, many lenders only work with clients who come through mortgage brokers. Plus, brokers can often gain access to products that aren’t available to the general public. This puts you in a good position as a buyer, because you can benefit from this access. Beyond that, your broker can help you determine your budget, how to deal with your debt, and can address any questions you have about your mortgage along the way. Your relationship with your broker doesn’t end once you purchase your home, either. We stick with you throughout your homeownership experience to ensure your product is always serving your needs!

There are lots of mortgage myths out there that can make the buying process more difficult. However, working with a trusted broker can remove this stress and help you move through this experience with ease. We are here to ensure you find the right product and lender, so you can feel confident as you move into your new home.