Buying or selling a home is one of the biggest financial decisions you'll make in your life, and misinformation and bad advice can make it even more dangerous. But fear not. We are here to set the record straight. Here are the most common myths you hear:
1. You need a perfect credit score to get a mortgage: While having good credit is important when applying for a mortgage, you don't necessarily need a perfect credit score to be approved for a loan. Lenders consider a variety of factors when evaluating your application, including your income, liabilities, and employment history etc.
2. You need a 20% deposit to buy a home: While a larger deposit can help you secure a lower interest rate and reduce your monthly payments, it's not necessary to put down a large sum of money to buy a home. Many lenders offer loans with deposits as low as 5%.
3. You should buy the most expensive home you can afford: It's important to remember that your mortgage payment is just one of the many expenses you'll face as a homeowner. You'll also need to budget for rates, homeowners’ insurance, maintenance and repairs, and other costs. It's important to choose a home that fits your budget and lifestyle, rather than stretching yourself too thin to buy the most expensive home possible.
4. You don’t need a mortgage broker: A mortgage broker can be a valuable ally for anyone looking to obtain a home loan. They can provide access to a wide range of lenders and loan products, expert guidance, and support, and can help streamline the home loan application and approval process.
Finally, it's important to remember that buying a home is a significant financial commitment, but it's also an investment in your future. By dispelling these myths and gaining a clear understanding of the home-buying process, you can make a confident and informed decision about buying your first home. Speak your mortgage broker to better understand these matters.
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