Setting Straight Homebuying Myths

Homebuying Myths

Especially if you’re a first-time homebuyer, the process of buying or selling your home can be very complex. At Altius Mortgage and our partners at Mortgage Ogden, we’re here to make things just a little bit easier as you apply for a home loan.

Unfortunately, there’s a wealth of misinformation that has spread across our industry over the years. Let’s look at a few of the areas that many first-time homebuyers miss based on popular perception, and what the truths about these areas are.

Having an Agent

Zillow recently found that younger homebuyers in the market, often due to modern trends in information, don’t really understand what’s needed to facilitate the buying or selling process. Many conclude that because of their ability to do all the research online, they don’t need a real estate agent.

While new modern information has made homebuying smoother in many ways, however, it has not eliminated the need for professional assistance. Someone who knows and studies the market is still vital, even if proprietary information is mostly available to the public now. You don’t just need this information itself – you need someone who can help you interpret it.

Open Houses

Down similar lines, many younger buyers no longer feel as though an open house is necessary when selling. This trend may have been set off by new digital tour services that are available online, but nothing can replace the experience of seeing the home in person. If you’re in the market, always make sure you visit your prospective home in person to ensure it’s somewhere you want to live for a long time.

Down Payments

Down payments are some of the most common myths that pervade the home loan world. A recent survey showed that 28 percent of buyers think that 20 percent down is an absolute, hard and fast requirement for buying a home. Another 41 percent said that they understood that lower options were available, but that it’s still much harder to get a home without putting 20 percent down.

Both these assumptions are false. There are various lower down payment options available to buyers in all walks of life, and the industry as a whole is working to do a better job of informing prospective buyers about these. If you can’t come up with 20 percent down up front, this is not simply a guarantee that you won’t be able to offer on that home – not even close, in fact.

For more on common homebuying myths to avoid, or to find out about any of our mortgage services, speak to the mortgage brokers at Altius Mortgage today.

Mortgage Application: Step By Step

Mortgage Application

At Altius Mortgage and our partners at Mortgage Ogden, we’ll help walk you through every step of what can be a complex mortgage process. Home loans are some of the largest expenses you’ll undertake in your life, and you need to be confident about every step you take in this direction.

For those who have never done it before, let’s lay out exactly what these specific steps will entail. Here are the general stages of the mortgage application process, from start to finish.

Filling Out Application

The first step is filling out the application itself, and our mortgage brokers can be of service here. You can supply information by phone or in person while our representatives help you out, and the entire process will likely take under an hour. Most mortgage applications will have about five pages of questions regarding finances, debts, assets, employment, the loan and the property itself.

Reviewing Loan Estimates

If you’ve applied to more than one lender, you can review your options using the Loan Estimate forms. Don’t focus too much on rate, and ask your lender to explain anything you don’t understand here. Compare the total cost in five years, the principal you’ll have paid in five years, the APR (annual percentage rate) and the percent of the money paid in interest you’ll be undertaking over the life of the mortgage.

Choosing and Committing

Once you’ve compared lenders, you can assess all the factors and make your choice. From here, you contact your lender and say you’re ready to move forward.

Loan Processing

The loan processing area is one that will take a couple weeks, and involves confirming all the financial information you provided on your application.

Underwriting

Similarly, an underwriter is hired to assess the risk of lending money to you based on the property you’re interested in. They’ll check on various financial elements from an objective standpoint, and will also check on the home itself and ensure that it’s properly valued before you purchase it.

Closing

Finally, it’s time for your loan to close. This doesn’t require any action on your part – it’s up to the lender to send a Closing Disclosure, and all you have to do is compare this to your Loan Estimate to make sure none of the important numbers have changed. If they have, you can discuss them with your lender and ensure there wasn’t just a simple error.

For more on the steps to filling out a mortgage application, or to find out about any of our other mortgage services, speak to the pros at Altius Mortgage today.