There are a lot of myths out there about mortgages

It’s Jane and Jim from Real Estate Home Loans, and we’re super excited to kick off our very first podcast! We can’t wait to share our journey with you, so please be kind as we dive in! So many options to explore! Check out these myths we just chatted about!

MYTH #1) You need 20% down to purchase a home. That’s NOT true.
There are loans programs out there that offer no money down, USDA (United States Department of Agriculture),VA (Veterans Affairs), Downpayment Assistance, FHA with 3-1/2% down, Conventional which starts at 3% down.

That is an old way of thinking. If you had the opportunity to put 20% down, you are just avoiding, PMI (Private Mortgage Insurance) which adds to your payment.

Mortgage insurance is very affordable now, and you can eventually get rid of this insurance.

MYTH #2) You can’t get a loan with student loans. You can!
All loan programs are different, some might require a certain percentage of the students loans.

MYTH #3) I have to be at my job for 2 years. That’s NOT true.
We are looking for a 2-year work history, but we are not looking for a work history at the same employer. We are not even looking for the same work history in the same field. It’s just about consistency. The 2-year thing comes up if you are self-employed or if you are using bonus income or commission income; they want 2-year averages. And there are some programs out there that only need a 1-year income average

MYTH #4) If I was denied once, I can’t apply for another loan. That’s NOT true.
It’s not even recorded anywhere when you apply for a loan. The lenders that pull your credit are the only ones that show up on your credit report, and you just have to explain that.

MYTH #5) I have to have perfect credit to buy a house. That’s NOT true.
We are closing conventional loans with credit scores lower than what we used to need for FHA.

MYTH #6) Every time I get my credit score pulled, my scores are going to go down. That’s NOT true.
You can have your credit pulled by multiple lenders by over a course period of time, and it won’t affect your credit score. Credit Karma is not the same as when we pull your credit. It’s a consumer model. They are good for content, and getting yourself removed, etc.

MYTH #7) I don’t have any credit, so I can’t get a loan. That’s NOT true.
There are a lot of programs that are out there, that will help you even if you have no credit.

MYTH #8) I am self-employed and write everything off with my business. That’s NOT true.
We specialize in self-employed customers. There are many loan options that are made specifically for self-employed customers: Bank Statement Programs, No ratio Loans, profit-and-loss programs, 1099 Programs

MYTH #9) All lenders have the same programs. That’s NOT true.
There is something called “Overlay”. Fannie May, Freddie Mac, FHA, VA, USDA, they make their own rules, and the banks follow the rules. However, banks, mortgage companies, mortgage brokers, are allowed to have overlay. Overlay are “rules-on top-of-the-rules”.

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Don’t forget to tune in for our next podcast episode! We’re super excited to hear your suggestions and questions. And if you’re a real estate agent looking to chat, we definitely want to connect with you! Hey everyone! We’re super excited to hear your thoughts and ideas! If you want to be a guest or have some awesome content suggestions, drop a comment below! We can’t wait to see what you come up with!