7 Common Misconceptions about the Home-Buying Process
- I need 20% as a down payment—You can put as little as 3% down, and with some government programs you may not need to put anything down! There are numerous first-time homebuying programs available to assist with the amount you do have to put down. With some programs, you can even get money back at closing!
- Rent is cheaper than a mortgage—This is not necessarily true. When you are paying a mortgage, a portion of each payment builds up the equity in the home, so you are investing in yourself and your future. Let us know the amount of your current rent payment, and we can tell you what your purchase price would be in order to match or even lower that monthly amount!
- I must have a high credit score to qualify—You do not have to have perfect credit to qualify for a home mortgage. In fact, you can have a credit score as low as 620!
- Applying for a mortgage hurts my credit—When applying for a home loan, a credit pull called a “hard inquiry” is required, but, usually, it will not hurt your credit score. One to two hard inquiries per year may temporarily decrease your credit score a few points, but it bounces back within just a couple of months. When applying for a mortgage, you may want to shop a few lenders, but be aware of how many hard inquiries are being pulled. We also recommend not opening any new lines of credit during that time, as this also requires a hard inquiry.
- Having debt and/or student loans is a deal breaker—Not necessarily. When applying for a mortgage loan, lenders look at your debt-to-income ratio (DTI), which is the quotient of your monthly payments divided by your monthly income. Examples of monthly payments would include revolving credit, car payments, student loans, and medical bills. Monthly payments not included in DTI are utilities, phone bill, internet service, and car insurance. Even if you have high student loan payments, we can factor in these payments to help you qualify.
- I can’t qualify just off tip income—As long as all tips are accurately reported on your tax returns, you can absolutely qualify using any legal income. With proof of income documented coupled with a verification of employment, you can qualify solely off tip income!
- The market is too crazy right now —Although the market is tight and inventory may be low in certain areas, timing the real estate market is hard. Most buyers who wait end up buying in later at a higher price. So now is the time to begin one of the safest and most profitable investments of your life! Partnering with a qualified agent who has valuable connections and knows how to negotiate on your behalf, though, is crucial. We can provide excellent agent referrals based on your needs, whether you are a first-time homebuyer or someone looking for an investment property. We connect with many agents that have helped buyers find their perfect home!
See what you can prequalify for today!
Let’s talk! Contact S&S Mortgage Team today to find out how which of our loan options would work best for your situation. Prequalify for a Synergy One loan to start your home search today!
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2420 17th Street
3rd Floor
Denver, CO 80202
Team Email: SSMortgageTeam@Nafinc.com
Shay Jenkins: Shay.Jenkins@Nafinc.com | 303-507-6794 | NMLS# 1514100
Sarah Alberts: Sarah.Alberts@Nafinc.com | 720-366-9200 | NMLS# 1032969
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ABOUT S&S MORTGAGE TEAM
S&S Mortgage Team is a full-service mortgage lender based in the Denver metro area. We are licensed in AL, AZ, AR, CA, CO, FL, GA, ID, IL, IN, IA, KS, LA, MA, MN, MO, MT, NE, NV, NJ, NM, NC, OH, OK, OR, SD, SC, TN, TX, WA, WI, and WY.
