Are you a renter who dreams of owning a home? A surprisingly large number of renters can achieve their dream of owning Fort McMurray real estate but are held back by popular misconceptions.
Misconception 1: Interest Rates Are Too High
Interest rates are actually near historic lows. Interest rate shifts of a fraction of a point rarely affect your ability to afford a home. If you’re borderline on affording your dream home, consult with a Fort McMurray mortgage broker to learn how you can qualify for it. You might qualify if you can negotiate down the purchase price or get better loan terms.
Misconception 2: I Need 20 Percent Down
Many people are trying to save up 20 percent for their down payment. There is a valid reason for this misconception. Some mistake the 20 percent threshold for private mortgage insurance as the down payment requirement. Others have an inflated fear of private mortgage insurance. In reality, you don’t need 20 percent down to buy a home. You could get a new home with five percent down. The primary home is 5% down payment, a vacation home is 10% and a rental is 20% down payment required.
Misconception 3: I Can’t Buy Because I Don’t Have Perfect Credit
Your credit does affect the mortgage interest rate you’re offered. However, you don’t have to have perfect credit to qualify for a house. Furthermore, if your mortgage lender quoted an insanely high-interest rate or fees, know that you can shop around for a better rate. If you increase your down payment or talk to us on how to get your credit score higher we can help achieve a lower interest rate.
Don’t let popular misconceptions about mortgage lending prevent you from buying your first home.