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May 01, 2014

Mortgage Myths Busted

Mortgage Myths

"If I'm going to have to put 20 percent down, I'll never be able to buy a house."
"My credit report is less than spotless. No bank is going to give me a mortgage."
"I don't make enough money to be a homeowner."
"I was too slow to jump into the market and missed the great mortgage rates."

While there are lots of misconceptions about buying a home these days, we’re hearing these four myths pretty regularly.

It's understandable. After the mortgage market meltdown, buying a home became tougher for a lot of people as underwriting requirements were tightened across the industry. Plenty of homeowners took advantage of falling interest rates to refinance, but refinancing ended up dominating the activity in the mortgage market. New homebuyers – many spooked by what they'd seen during the crisis – waited on the sidelines.

Now interest rates are rising (they've gone up almost a full percentage point since last spring) and many potential homebuyers are still waiting. Are the myths keeping them away? Of course, for some people, the myths are reality; not everyone is in a position to buy a home today. But if you are, you should look into it – you might be surprised at how easily the myths can be busted.

Read more from VP and Head of Single-Family Sourcing & Relationship Management Christina Boyle in a new Executive Perspectives article we call "4 Homeownership Myths That Deserve to Die."

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