It can be difficult as a first-time homebuyer to know what information is true and what is false regarding Tustin mortgages. So, to help give some clarity, Matthew Campbell with American Financial Network, Inc. has listed four of the top mortgage myths and explained why they are false.
#1. You Should Rent Instead Of Buy
Home’s appreciate in value over time, which means the longer you are in your home the more value it is going to have. This creates an automatic savings account without you needing to do anything. You can also receive large tax deductions on the interest paid on your mortgage, where you do not receive any tax deductions by renting. Also, owning a home not only gives you financial benefits but it also gives you more privacy and complete artistic freedom so you can decorate your home any way you would like without having to pay a fee.
#2. You Only Need Enough Savings For A Down Payment
Unfortunately, purchasing a home is much more than just paying for the listed price. You will have multiple closing costs that are required before your mortgage application is complete. Some common closing costs include an origination fee, title insurance, appraisal fee, lawyer fees, homeowners insurance, escrow, and courier fee. For more information on the different types of closing costs, please contact your Tustin mortgage lender at 714-241-2326 or 714-488-0227.
#3. You Can Only Qualify For Cheap Rates If You Pay 20% Towards Your Down Payment
You can obtain a great mortgage with affordable interest rates if you pay less than 20% on your down payment. For government-backed loans, you can pay a minimum down payment of 3.5% for an FHA loan. If you are a veteran or currently employed with the armed forces, you could qualify for a VA loan that has a zero per cent down payment requirement. If you are looking for a mortgage in a rural area, you could qualify for a USDA loan that also has a zero per cent requirement for a down payment. Contact your Tustin loan officer to see if you qualify for these great deals.
#4. You Need Excellent Credit To Qualify For A Mortgage
You do not have to have excellent credit to qualify for a mortgage. For an FHA loan, there is a minimum credit score requirement of 500. This is a great loan that offers low-interest rates and affordable monthly payments. You can also qualify for a conventional loan with a credit score as low as 600.
Get Started Today
For more information on common mortgage myths, or to get started on your Tustin mortgage application, please contact Matthew Campbell with American Financial Network, Inc. at 714-241-2326 or 714-488-0227.