Home Buying:Tips and Myths About Mortgages

This article was contributed by: Jay White a Loan Officer in Atlanta, GA with First Community Mortgage Inc.

If you are prepared, buying a new home is very exciting and can be an enjoyable process. Below are a few tips on how to prepare you for buying a new home, what to be aware of going in and a few myths that surround mortgage requirements.

  • Know your credit

 Scores are a factor; a minimum of 620 is required, 720 plus score is not required to buy a new home; as some lead you to believe. Beyond scores you must make sure that you have no late payments or collections after a bankruptcy. Tax liens, judgments must be settled before closing. Medical collections are ignored.

  • Two things you must do:
    • Pull your credit; you can do this free with no scores by clicking this link credit report.
    • Opt Out of prescreen offers by clicking this link; opt out 

 

  •    Down payment

3.5% of purchase price is minimum required for buying a new home. There are a lot of myths that state you must have 20% down….this is not true. The down payment must be sourced and seasoned for a minimum of 60 days; a gift from a relative can be used as well.

  • Employment  

 Recently graduated college, switched employers, was self-employed now you are a W2 employee….you can buy 30 days after employment.  Just need one pay stub with a month worth of earnings to close. Showing stable income, proving that you can afford the home makes the home buying process easier. 

These are just a few tips to make sure the basics are covered before starting the home buying process.

The biggest myth I want to eliminate is that we are not lending money for mortgages in the current market! We are lending money. In fact, mortgage rates are the lowest they have been in history! It is a buyer’s market. Take advantage of today’s buyers market.

This article was contributed by: Jay White a Loan Officer in Atlanta, GA with First Community Mortgage Inc. Learn more about Jay and mortgages at:

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