Debunking myths about Mortgage brokers

It is very easy to get astray in the big world of mortgage and even more so when there are just a lot options to choose from among best mortgage companies. If somebody wants to have a basic idea about what mortgages are, then in a nutshell, it can be said that they are loan documents that are signed by two parties that are debtors and lenders. The contract lays down all the terms and conditions for the mortgage that is pre-decided already according to the will of both the sides. There are many people who have understood the concept of mortgages and they know everything there is to know about them. But still, there are some people who always get confused with few of the myth theories about mortgages doing the rounds. This blog will help you to get some of your misconceptions right.

Myth №1- 1st installment of 20 % and credit score of 700
It is a badly circulated myth. It is not at all necessary that you have to have about 20% of the amount of money ready in order to make the very first payment of the other remaining installments. There are many mortgage companies near me that offer mortgages at much more relaxed conditions. Also, a credit score of 700 is not mandatory for all the mortgage firms out there. In case if you are lucky, then you may even find few firms that may have your mortgage loan accepted for a much lower score. It all comes down to the discretion of the firm as well as the type of mortgage you are going for.

Myth №2- Not a compulsion to get a fixed 30 year mortgage
Now this could actually qualify as the most commonly held myth about mortgages which is not at all the truth. It is definitely not a hard and fast rule to have a mortgage that should not be less than 30 years. If facts provided by the best mortgage companies are to be seen in an objective manner, such mortgages have a higher rate of interest as compared to the mortgages that are available for a shorter period of time and they have a rate of interest that can be adjusted according to the convenience of either party of the contract. In the scenarios where people do not even live in a house for 30 years which mostly happens, they usually end up meeting losses.

Myth №3- Pre-qualification is pre-approved
Absolutely untrue! It cannot be emphasized more that pre-qualification is not pre-approved at all. People tend to have both of them mixed with each other. It is very important to know that getting pre-qualified for a mortgage is not equivalent of getting pre-approved. According to a mortgage specialist, the letter sent for getting pre-qualified is very easy but the entire procedure for pre-approve is very long and multiple documents need to be submitted over a course of different rounds. And pre-approvals are given more significance in a multi offer situation as compared to the former.

Myth №4- If you are in debt then you cannot get a home through mortgage
Another misconception that people have in their minds that if one is already repaying back a loan then that person may not be able to get a house on the basis of another new mortgage. In case if that was the scenario then almost all the people who apply for mortgages would have to be loan and mortgage free. In times like today’s, it is not possible to be without any impending financial burdens like that especially when people have multiple repayments going on for cars, student loans etc.

Now you can approach any mortgage advisor confidently
By this time, we are sure that after having cleared few of the most usual myths around mortgage you must be feeling determined to apply for one. And we would like to remind you that we have got your back. You should not hesitate to come into our offices in Tulsa, OK at your earliest convenience so that we can get started on processing your mortgage for you today itself. You can call us at 231–737–9911 to book your very first appointment.