Myths About Home Ownership
Lenders evaluate mortgage applications a lot differently today than they did even
10 years ago. And even more has changed in the last 20 years. What used to close the door
to homeownership may not be a factor today.
Here are some common homeownership myths:
Myth: You need great credit to become a homeowner.
Fact: You may still be able to buy a home with less-than-perfect
credit. And remember, you can improve your credit over time.
Myth: You need to put 20% down to buy a home.
Fact: There are many types of mortgage products and programs that
allow low and no down payments. But remember to factor in other costs such as closing
costs, property taxes, moving expenses, and repairs.
Myth: You can't buy a home in the U.S. if you're not a citizen.
Fact: If you're a legal resident, you can purchase a home in the U.S.
Myth: If you don't have a bank account or credit cards, you can't qualify
for a mortgage.
Fact: Having a bank account is always a good idea and helps
you establish credit. However, lenders can approve you for a mortgage even if you
don't have a bank account or credit cards. You'll likely need to keep records
showing a history of payments you've made for items such as rent, utilities, and
Myth: Lenders share your personal financial information with other companies.
Fact: By law, banks and other financial institutions are restricted
in their uses and disclosures of information about you. In some situations, you may choose
to restrict the disclosure of your information if you don't want it to be shared.
Myth: If you're late on your monthly mortgage payments, you'll lose your house.
Fact: If you have a financial hardship, like the death of your
spouse or a medical emergency and fall behind, it's possible to keep your home and
get back on track if you contact your lender early.
Myth: You can't get a mortgage if you've changed jobs several times in the
last few years.
Fact: Not true. You can change jobs several times and still
get a loan to buy a home. Lenders understand that people change jobs. The important
thing is to show that you've had a stable income.