Jan 6 2016 9467 1

Jan 6 2016 9467 1


Buying your first home is one of the most intimidating and overwhelming purchases that we can make in our adult lives.  The idea of a mortgage can be daunting and may make you question your creditworthiness, your financial obligations as a mortgage holder, and what it means to have a home as an investment.  Often times consumers are misled by their own misconceptions and have yet to learn the facts about mortgages.  Here are some common mortgage myths and the truth behind them.

A High Credit Score isn't a Must

Many home hunters think that a high or near perfect credit score is a necessity in order to qualify for a mortgage in the first place.  Thankfully, this is false.  Some first-time homeowners haven't adequately built up their credit, so there are fortunately loans out there, such as a FHA loan, that have a minimum FICO score of 580.  If your credit score is lower than this, consider taking a few weeks/months to better build your score.  A higher score can mean more flexibility in home buying.

You Don't Need a 20% Down Payment

Some people believe that buying a house as a investment opportunity is a sure thing for return on investment.  This simply is not the truth.  Although a house can hold its value, it's important nto to go into home buying with only returns in mind.  The housing market is a fickle creature and even when things are good, values rise slowly.  Particularly if your down payment is small, remember that it takes a while to build equity.  More of the first few payments in the life of a loan go towards interest, not the equity next egg.  Even if you are approved for a large mortgage loan, remember to keep the location of the home, as well as how well the home works for you, at the forefront of your mind, rather then being investment minded.

Pre-Qualified is Not Pre-Approved

Before you begin your home perusal, start with a stop at a mortgage lender.  Find out what you are pre-qualified for and let this number help navigate your hunting.  Don't be fooled, though.  Pre-qualifying doesn't guarantee that you will be approved for that amount in the final purchasing hour.  Once a home is decided upon, a lender will use things beyond your stated income to determine your approved amount.  This includes things such as past tax returns and credit score.  Further still, credit checks or major purchases up until your closing date can take a toll on what your mortgage lender will give out.

For a long time now, mortgages have been thought to be a piece of the puzzle that comes in at the tail-end of the process, but truly, this crucial financial part should be the first to be laid on the table.  Then, set your eyes on your first potential home.  Be armed with knowledge of what you can afford and what it means to invest in a home.  Perhaps you are now looking forward to your first purchase that just moments ago you thought was an impossibility!

So, now that you have read the myths of mortgages, give me a call at 480.600.3948 to discuss your situation and then we can get you a lender that will answer your questions and get your pre-approved for a loan.   Once you have the pre-approval we can go and view any homes you want to.  I'm always available to show homes and answer any questions you may have.

Mike Dokos

Homesmart Realty




Edna Montijo - Owner Headshot
Phone: 480-999-1156
Dated: January 6th 2016
Views: 411
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2450 S Gilbert Rd #206
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