Securing a mortgage that’s right for you and your family is a complex and detailed process, part of the reason you come to Altius Mortgage. Our brokers will work with you to find the best rates and loan setup for your home loan, and guide you through the tougher parts of the process.
A big part of our service to you involves steering you clear of common misconceptions within the mortgage industry. Many of these are myths that have somehow gained steam over the years, myths which could be very damaging to your finances. Here are some of the most common ones, plus the truth behind them.
The housing crisis of the mid-2000s spawned one particularly noisy myth: That fixed-rate loans are always preferable to adjustable-rate loans. Because adjustable-rate loans and their variability were part of what spawned the collapse of the market, they’re often treated like the plague. But there are many cases where adjustable-rate loans might be best, just as there are cases where fixed-rate loans make more sense.
Additionally, it’s common for people to assume that the rate you’re quoted on the surface is the same as your final, actual rate. Mortgage rates are calculated on a daily basis – if you get your rate during pre-approval, there’s nearly a guarantee this rate will have changed by the day you’re actually signing the paperwork. To stay up to date here, make sure to keep on top of the lender with accurate rates.
Mortgage laws prevent lenders and real estate agents from colluding for client recommendations, but there’s nothing illegal about agents having preferences. Know that your broker is a vital outlet, and the more reputable and respected in the industry they are, the better it might be for you. Altius Mortgage has reached the heights we have in part because of our reputation for legitimacy and reputable dealings.
Credit scores are generally displayed using three numbers, representing three major American credit bureaus: Experian, TransUnion and Equifax. The common misconception here is that whatever your highest number of the three is, that’s the mark lenders will look at – this is false. They’ll typically average the score, and some might even look at your lowest score. Additionally, if you’re applying with a co-borrower, lenders will almost always default to the lower credit score between the two of you to lock in your final number.
Want to learn more about these common misconceptions, or any other part of our mortgage services? Speak to one of our brokers today.