What’s true and what’s a myth when it comes to home buying and mortgages? On today’s episode, Bill is going to play myth-buster as we go through 7 different statements.
Is it true you need to put 20% down? Does your down payment cover closing costs? While you don’t necessarily need to put all 20% down, it’s all going to depend on your situation. We’ll also go over how a mortgage pull impacts your credit, whether student loans are a dealbreaker, the difference between pre-qualification vs. pre-approval, and much more. There’s a lot of information out there so we’ll help you sort through these statements and discern fact from fiction.
0:54 – Do you need to put 20% down?
1:48 – Does your down payment cover your closing costs?
2:44 – Does applying for a mortgage hurt your credit?
3:44 – Is having a student loan a dealbreaker?
5:07 – Are adjustable-rate mortgages bad?
6:28 – Do you get penalized for paying your mortgage off early?
7:15 – Are pre-qualification and pre-approval the same thing?
8:11 – Are there any other misconceptions?
QUOTABLE MORTGAGE MOMENT:
“If you’ve got plenty of cash and you’re not going to feel it at all, you can put 20% down, that’s great. But don’t spend your last dollar just to get to 20% down. You still want to have a rainy-day fund in your checking account. “