October 24, 2016

First-Time Buyers' Myths About Mortgages

-A A +A

First-Time Buyers' Myths About Mortgages

While® predicts 2015 will be the year of the first-time home buyer — a predicted increase in job growth next year should drive Millennials back into the housing market — many of them have some misguided ideas about mortgages. Joel Gurman, vice president of mortgage banking at Quicken Loans, says first-time buyers often mistakenly believe these myths about mortgage lending:

  • Lending requirements are still too tight. (Actually, mortgage standards have been easing dramatically.)
  • It's not necessary to check your credit before embarking on the mortgage process.
  • "Preapproved" and "prequalified" are interchangeable terms. 
  • You should wait until after choosing a home before talking to a lender.
  • You must have a 20 percent down payment.
  • You should focus your home search solely on your wants.
  • You do not need a home inspection.

Source: "7 Myths Millennials Believe About Mortgage Lending," HousingWire (Dec. 2, 2014)

Copyright © 2014 Information Inc.