Discover the truth behind these mortgage misconceptions.
Before you can buy a home, you must first qualify for a mortgage loan. However, qualifying for a mortgage can be a complex process. There’s a lot of information out there, which leaves plenty of room for misconceptions. Bust these mortgage misconceptions with these truths so that you’re best able to get the loan you need for homeownership.
Misconception: A Fixed Mortgage is the Way to Go.
When qualifying for a mortgage loan, you generally have two options: a fixed mortgage or an adjustable mortgage. There’s a common misconception that a fixed mortgage is better than an adjustable mortgage, but that’s not necessarily the case. There are various factors that come into play when deciding which type of loan is best for you. For example, if you’re not planning on staying in your new home for long, an adjustable mortgage may be better than a fixed mortgage. Weigh the pros and cons with your lender to help you make the best decision.
Misconception: You Need At least 20 Percent Down When Buying a Home.
While lenders favor a higher down payment, it’s not the end of the world if you don’t have at least 20 percent down. You can still qualify for a mortgage loan with as little as three percent down. However, keep in mind that with a lower down payment, your monthly payments are going to be higher. Not to mention you will likely need mortgage insurance to give you the protection that you need.
When navigating the home buying process, ensure that you get through the process as painlessly as possible so you can enjoy your new home. Dedicated service paired with top-tier escrow services are a must when closing an escrow deal. Contact Brighton Escrow for assistance! Our Hermosa Beach, California team is committed to helping you make the most of your escrow process.