Top 5 Mortgage Myths You Shouldn't Believe

Getting a mortgage is an important step for many people. It makes home ownership possible in a lot of cases. However, it’s also a big commitment and potentially a costly one. That’s why it’s absolutely crucial that you have as much information as possible going into the process.

Unfortunately, there are many myths out there that confuse the situation. If you’re trying to get a mortgage, you’ll want to make sure you have accurate information. Here are some of the biggest mortgage myths out there and the truth about each situation.

Myth #1: You Can’t Get a Mortgage if you are Self-Employed

More and more people are working for themselves these days, with Some people believe that it’s impossible to get a mortgage if you are self-employed. This isn’t true. However, a person who is self-employed may be asked different questions or have different information requested of them.

For instance, if you have a standard job working for an employer, the mortgage lender may ask you for pay slips from the last few months. If you are self-employed, however, you may be asked to provide your Notice of Assessment from your income taxes to confirm your income. In addition, the lender might want to see several years of statements to get a better picture of your financial situation.

However, while the process may be different, it’s still entirely possible to get a mortgage if you’re self-employed.

Myth #2: A Lower Interest Rate Means a Cheaper Mortgage

You might be looking at mortgage rates today and thinking that the best way to get a cheaper mortgage is to get a lower interest rate. While having a lower rate is generally preferable, it doesn’t automatically mean you’ll have a cheaper mortgage. There are many factors to consider, including how often you make payments, the loan period, the flexibility of the mortgage, if there are any prepayment options, and much more.

Myth #3: Shopping Around Can Hurt your Credit Score

This myth comes from the fact that, in general, more inquires made into your credit score negatively affect it. However, this generally doesn’t apply when you are shopping around for a mortgage.

Each time a lender looks into your account, this will be noted in your credit report as a “hard inquiry.” Too many hard inquiries can negatively affect your credit score. However, credit bureaus tend to recognize that several inquiries in a short period for the same purpose usually means someone is looking for the best rate. Therefore, they often consider all of them together to be a single inquiry.

Myth #4: Mortgage Repayments Cost More than Rent

It is absolutely not true that mortgage payments are always more than rent. In fact, depending on where you live, the size of your downpayment, and several other factors, you could end up spending less paying back your mortgage than you do on rent.

If you’re wondering if it could make more financial sense to buy rather than rent, you should talk with a mortgage professional, such as the team at EasyMortgageLend.com. We can help you learn more about how much your mortgage repayments may cost you and that can help you decide whether it makes more sense to buy than to keep renting.

Myth #5: You Can’t Get a Mortgage with a Bad Credit Rating

One of the main things a mortgage lender looks at when considering a mortgage application is your credit rating. However, that doesn’t mean you won’t be able to get a mortgage if you have bad credit.

It’s natural to have questions and even concerns when you’re trying to get a mortgage. That’s why we’re here. Our team has the knowledge and experience needed to help you get the right mortgage for your situation. We’ll go through every step of the mortgage process with you, providing you with the details and the assistance you need to get a mortgage that makes sense for you.

For more information, or to book an appointment with a member of our team, please contact us online or give us a call at (647) 895-3921.