Busting Common Mortgage Myths
Buying your first home should be a little scary—after all, that’s part of the fun—but it shouldn’t be scary for the wrong reasons. Unfortunately, there are a lot of myths and misinformation surrounding home mortgage loans in O’Fallon that are frightening off many first-time homebuyers. If you’re overly concerned with some of the tales you’ve heard about home mortgage loans, this brief guide will ease your mind by busting some of the most common myths about home mortgages.
Myth: You Need Perfect Credit to Qualify
Although a high credit score will certainly help you get a better loan, less-than-perfect credit isn’t a deal-breaker when it comes to qualifying for a mortgage . Other compensating factors such as a larger down payment and a low debt-to-income ratio can offset some minor credit blemishes and financial scrape-ups to help you qualify for a home mortgage loan.
Myth: You Need to Put Down at Least 20 Percent
Speaking of down payments, one of the most recurring mortgage myths is that buyers need to put down at least 20 percent of the purchase price. Again, while it helps to have a sizeable down payment, many lenders offer loans that don’t require a down payment anywhere close to 20 percent.
Myth: Renting is Cheaper than Buying a Home
You’ve probably heard people say that renting is the better option if you’re looking to save money. While this may be true in the very short term, it’s almost always less expensive to pay a mortgage than to rent a comparable home. As a homeowner you will also build equity, whereas the money you pay over the course of a lease term belongs to the landlord.
With the right lender on your side, buying a new home can be one of the most joyous occasions in your life. GCS Credit Union offers a wide range of home mortgage loans and refinancing programs that help our members settle into their homes with manageable payments and flexible terms. Visit one of our branches to apply for a home mortgage loan , or call us at (618) 797-7993 to speak with one of our loan officers for additional information.