Ready to apply for a mortgage in Colorado Springs? You need to make sure your financial records are ready. You also need to make sure that your credit score is good.
One thing that many home buyers tend to forget to do is to look out for myths that could potentially affect their decisions. Some home buyers are held back by wrong information, while others are pushed to decide that they might regret later.
To help you out and make sure you won’t commit those mistakes, here are some mortgage myths that could cost you time and money:
Myth #1: Low Rates Mean You Need to Purchase a Home ASAP
The first myth is that you need to buy a home as soon as you see a low mortgage rate. These days, many mortgage companies are offering low-interest rates to attract clients. You need to make sure you don’t rush into the process. After all, while rates are a significant factor, they’re not the only consideration you need to make.
Myth #2: You Should First Start Looking for a Home Before Worrying About a Mortgage
The second mortgage myth is to search for a home before you worry about the mortgage. There are some mortgage companies out there that will allow you to simply view homes first then apply for a mortgage later on. This is an option if you want to continue looking for a home while you’re waiting for a mortgage. However, this is not the best way to do it. It is recommended that you get pre-approved first before you start house-hunting. This way, sellers will take you seriously, and you’ll have a better idea of your budget for the house.
Myth #3: You Need Perfect Credit Score to Get Approved for a Mortgage
The third myth is that you need a perfect credit score when applying for a loan. This is a myth because you can still get approved for a mortgage even if you have a low credit score. However, make sure you know the mortgage rate and amount you can get when you have a low credit score.
Myth #4: You Should Always Go for a 30-Year Fixed-Rate Mortgage
If you’re having difficulty deciding on the type of mortgage you want, another myth you need to avoid is going for a 30-year fixed-rate mortgage. This is a good alternative if you can comfortably meet the monthly payments now. But if you’re planning a large purchase in the future, you should look for a different option.
Myth #5: You Should Not Consider Refinancing
The fifth mortgage myth is that you shouldn’t consider refinancing. If you’re planning to pay off your mortgage in the next six months to a year, you might want to consider refinancing your mortgage. Many mortgage companies will allow you to refinance your mortgage with a lower interest rate and better payment options.
It is also vital to avoid myths that could potentially affect your decision when buying a home. Before you sign on any mortgage plan, make sure you know all the details and that you’re comfortable with your decision. Remember, it is your money. Make sure you get the best deal.
These are just some of the myths that could potentially affect your decisions regarding getting a mortgage in Colorado Springs. To help you make the right decision, you need to make sure you’re aware of these myths and the truth about them. Make sure you are only guided by facts when you make decisions.