Are you finally set to make a successful transition from staying in a rental property to purchasing your own house? The problem is you suddenly come across several misconceptions and are not quite sure of whether to believe them or not. Here are some of those most common myths that have been debunked.
Myth 1: Your first step should be to hunt for an appropriate house
It is possible that you want to have a proper feel of the locality. So, you decide to start the purchasing process by looking at some of the available properties. You may think that browsing is fun and that is the way to initiate the process, but in reality, that is not quite right. Before starting your house hunting process, you should be certain of your credit score. You need to have a high credit score in order to get your mortgage approved from the, ended. Additionally, you should try to seek for a pre-approval of your home mortgage prior to even starting the journey of your home-buying. You need to know what your budget before you start looking around.
Myth 2: the amount of down-payment should be always 20 percent
While there is no doubt that it is ideal to pay out 20 percent of the total value as your down payment when you want to stay away from PMI or a private mortgage insurance, there are several such lenders in the market who will happily offer you home loans with 5 or 10 percent down if you are not averse to the idea of paying your monthly PMI.
Myth 3: The best option should be to avail a thirty-year mortgage
It may not be always tight to assume that your mortgage using homes rates will be lower when you are okay with investing in your house for a longer time. However, many people for a fixed-rate thirty-year mortgage loan acne that comes cheaper than the 15-year period. However, you need to understand that you will eventually pay more when you go for a 30-year period.
It is wrong to assume that of you agree for a longer duration mortgage loan, your mortgage payments will be cheaper.