Fact or Myth in the World of Mortgage
There are always questions buying a home, first time or not, and that’s okay! It’s normal to have questions and spend time researching what’s real fact and what’s a known myth. To help answer your questions, here are few myths and facts about getting a mortgage!
- Your down payment for a mortgage needs to come from your own savings, and has to be around 10 to 20 percent to qualify.
When making a down payment the fund can come from numerous sources. Personal funds, gift funds and affordable second mortgages are all acceptable sources. As long as you’re qualified and you have the funds, you’ll be good to become a homeowner. As for the amount of the down payment, it does not have to be between 10-20 percent. There are loan options that will allow the borrower to put as little as 3.5% down through FHA loans.
- Pre-qualification is the same thing as a pre-approval
Although both pre-qualification and pre-approval go hand-in-hand, they are different steps in the loan process. A pre-qualification is where the lender, like Axia Home Loans, will evaluate your credit and decide if you are eligible for a loan up to a certain amount depending on your credit score and a pre-approval is the point in the process where the lender can approve you for a specific loan amount.
- All mortgage options are not the same
There are numerous types of mortgages to choose from depending on what your life situation is. With Axia Home Loans, there are seven different types of mortgages clients can choose from, each holding their own key benefits. From FHA loans to Jumbo mortgages and even VA loans, Axia’s Loan Originators can help clients decide what option is best for them.