While realtor.com® predicts 2015 will be the year of the first-time home buyer — a predicted increase in job growth next year should drive Millennials back into the housing market — many of them have some misguided ideas about mortgages. Joel Gurman, vice president of mortgage banking at Quicken Loans, says first-time buyers often mistakenly believe these myths about mortgage lending:
- Lending requirements are still too tight. (Actually, mortgage standards have been easing dramatically.)
- It’s not necessary to check your credit before embarking on the mortgage process.
- “Pre-approved” and “pre-qualified” are interchangeable terms.
- You should wait until after choosing a home before talking to a lender.
- You must have a 20 percent down payment.
- You should focus your home search solely on your wants.
- You do not need a home inspection.
These are all false facts that many first time home buyers may feel are true. If you need the help of an expert, give Barbara Pollack, Licensed Real Estate Salesperson with Real Living Five Corners, a call at (914) 522-0561.
Source: “7 Myths Millennials Believe About Mortgage Lending,” HousingWire (Dec. 2, 2014)