As many people may know, there are several myths and misconceptions surrounding mortgages which prevent people from taking advantage of this incredibly valuable financial tool. At Eminence Mortgages, we are here to dispel some of these myths and give you the accurate information that you need to make an informed decision about whether or not to get a mortgage.
The first myth which we have to dispel is the belief that a 20% down payment is necessary. The figures vary, but in reality, the average down payment for first-time, and even repeat homebuyers, are lower.
The second myth we must address is that you need to be debt-free first. A big concern for many people may be about their large amount of (student) debt, which they might believe will make them unable to qualify for a mortgage. However, this is simply not the case, and large amounts of debt is not necessarily a reason for why you may be prohibited from buying a home. The most important factor is your debt-to-income ratio, which is the percentage of your monthly gross income that you spend paying off recurring debt.
The final myth is that a 30-year mortgage is your only option. Whilst it is in fact one of the more popular options for homebuyers, there are numerous other options you can consider. By lowering the number of years of your mortgage, you will have to pay less in interest, and can own your home quicker.
We hope that we have helped to bust some common mortgage myths, and that we have shown you that applying for a mortgage can be an easy process. At Eminence Mortgages, we are here to support you every step of the way, no matter your situation.