Misinformation about mortgages costs buyers time and money. Here are the most common myths I encounter with Keys buyers.
Myth: You Need 20% Down
While 20% down eliminates PMI, it is not required for most loan programs. FHA loans need just 3.5%, conventional loans can go as low as 3%, and VA loans require nothing down.
Myth: Checking Your Credit Hurts Your Score
Checking your own credit does not affect your score. Multiple mortgage inquiries within a 14-45 day window count as a single inquiry.
Myth: Pre-Qualification and Pre-Approval Are the Same
Pre-qualification is a rough estimate. Pre-approval involves verified financial documentation and carries much more weight with sellers.
Myth: The Lowest Rate Is Always Best
A low rate with high fees may cost more than a slightly higher rate with low fees. Compare the APR, not just the interest rate.
Myth: You Cannot Buy with Student Loans
Student loan debt is factored into your DTI ratio, but it does not prevent you from qualifying. Income-driven repayment plans may help your qualification.