Revealed: The biggest mortgage myths busted wide open!
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Mortgages are a complex topic, meaning all sorts of misinformation and myths can be found online. Consequently, if you are buying a home for the first time, you can easily get caught up in a few of the lies surrounding mortgages. As such, we have compiled a small list of the biggest mortgage myths, busting them wide open to reveal the truth…
Mortgages put you in debt for life, renting makes more sense
Yes, mortgages will put you in debt for a long time. However, this is good debt as you are paying to own a property. Most people will pay off their mortgage at some point in their lives, taking full ownership of a property. Not only that but renting means you are paying money every month without really getting anything in return. You have a place to live, but you’re at the mercy of a landlord. In the long run, it’s far better to be in debt if it means you’re paying off a mortgage.
Only people with full-time jobs can get a mortgage
Not true, people that work as freelancers or have part-time jobs can still get a mortgage. It used to be much harder for these people to actually get approved, but society has changed to the point where so many people don’t have a typical 9-5 full-time job, so lenders are more open to handing out mortgages to people that can prove they are financially capable of paying it off. Ultimately, that’s what matters the most; if you can prove your ability to repay the mortgage, you will be accepted.
You can only get a mortgage from your bank
A common myth that people believe, and it’s not entirely known where this stemmed from. You can get a mortgage from anywhere that provides one – it doesn’t need to be the bank you’re currently with. In fact, it’s often suggested that you work with a mortgage broker to view all of the different options and products on the market. From here, you can apply for the best one to suit your needs, ensuring you get a loan that’s easy to repay and gives you the money you need for a house.
You need a perfect credit rating to get approval
Again, there’s a semblance of truth here, but only in the sense that your credit rating matters. The higher your rating, the more likely it is you will be approved for a mortgage and get an offer that pleases you. However, you don’t need a perfect score as people with less-than-impressive credit ratings can still apply for mortgages in this day and age. So, work on improving your credit score as much as you can, but don’t assume that your application will be denied if it isn’t perfect.
Truthfully, there are many other mortgage myths that people have probably spoken about plenty of times. The four in this article are perhaps the most common, but make sure you do lots of research before applying for your first mortgage.
