Debunking Common Mortgage Myths

Special article brought to you by Econ Mortgage

MYTH: You Need Perfect Credit to Buy a Home

Your credit score is an important factor in determining whether you qualify for a loan, but your credit doesn’t have to be perfect. There are a wide variety of loan options available for people with lower credit scores, including FHA loans, which are government-backed loans with lower credit requirements than conventional loans.

MYTH: You Need a 20% Down Payment

You can get a loan with as low as 3% down, and in some cases, loans are available with 0% down. The 20% myth is common because of mortgage lenders’ private mortgage insurance (PMI) requirement. PMI is required if you pay less than 20% down, but it can be removed once you reach 20% equity in the property.

MYTH: Mortgage Rates are the Same Everywhere

Borrowers often assume it doesn’t matter where you get your home loan because interest rates and fees are the same. The truth is that rates and fees vary significantly, which is why it’s wise to do your research and compare rates to find the best deal.

MYTH: It’s a Bad Idea to Refinance Unless __(Insert Reasoning Here)__

Homeowners often think they should only refinance if they’re remodeling, or trying to take cash out, or some other reason. There’s no right or wrong reason to refinance. Get a loan estimate and look at the numbers to determine if the timing is right for you to refinance.

MYTH: Shopping Around for the Best Loan will Hurt Your Credit Score

Comparing home loan offers from different lenders allows you to get the best rates and terms, and multiple credit inquiries for the same loan type won’t impact your score if done in a short period of time.

MYTH: The Mortgage Process is Difficult

Buying a house is a big deal, and can often feel overwhelming. Fortunately, the actual loan application and approval process is one of the easier parts of the process, as long as you have a knowledgeable loan officer who can help you through the process.

Who is Econ Mortgage?

At Econ Mortgage we keep our overhead low and use technology to streamline the mortgage process. We make less profit on each loan, so we can pass the savings on to our clients. Our clients keep coming back because they know we’ll take care of them and get them the best possible rate at a competitive price.

Our headquarters are here in Syracuse. We are home grown and love this community, but even more, we love helping our neighbors save money when they refinance or buy a new home. Call us at (385) 258-3588 or visit EconMortgage.com.

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