Buying a home can be frustrating and intimidating, especially if you’re relying on advice from friends and family members who purchased their homes years ago. We recommend turning to a professional instead if you want the home of the dreams and affordable mortgage rates.
If you’re in the market for a home, you may have heard a few of the following myths:
Find a home first
Some people might tell you to find the home you’re looking for first. After all, how else will you know you’re really serious until you find a property you love? Unfortunately, you might get your heart set on something, only to find that you don’t qualify or someone else can make a higher offer. Your best bet is to apply for pre-qualification instead.
Go for a longer-term loan
While the monthly payments for a 30-year loan may be lower, you’ll almost certainly wind up paying more for your home in the long run. Another option is to go for a 15-year fixed-rate loan if you can afford the monthly payments. Everyone’s situation is different. Talking with a professional loan originator will help determine the term that’s best for your unique circumstances.
You need to put 20% down
Of course, the more you can put down on your home, the better. But sometimes a 20% down payment is simply impossible, especially if you live in a hot market with steadily climbing property values. Fortunately, some lenders will offer mortgages with as little as 3.5-5% down, and there are even a few products that require no down payment!
About Premium Mortgage
Headquartered in Rochester, New York, Premium Mortgage Corporation serves residential real estate markets across upstate New York, Florida, Vermont, Massachusetts, Connecticut, Pennsylvania and Ohio. Since opening in 1999, the company has grown to over 100 employees and attributes its success to matching mortgage financing to individual clients’ needs, while also giving excellent customer service to real estate agents in the community. For ongoing mortgage news, please visit: www.premiummortgage.com and follow Premium on Facebook, Twitter, and Instagram.