Common Misconceptions About Mortgage Brokers

Getting a Mortgage home loan can be confusing sometimes, especially when you’re a first-time buyer. Nonetheless, it can be attainable in such an easy way with the right research and right planning.

Here are some misconceptions that you should know about Mortgage brokers:

1. Pre-qualified is the same as pre-approved. Pre-qualified typically means that you meet certain requirements to apply for a home loan, while Pre-approved is the next step where banks look at your financials, and you will be given a maximum loan amount based on how much the bank is willing to loan you.
2. Being pre-approved guarantees that you’ll get a home loan. There are issues that people tend to be approved for a Mortgage but suddenly they will find out that they've been denied. Some of the reasons why a Mortgage is denied include changing jobs and adding additional debts. It's essential that once you're pre-approved for a Mortgage, you do not make any rash decisions.
3. The Mortgage process is difficult. Many people think that getting a Mortgage is difficult, but in reality, it's all about the lenders. Other lenders tend not to communicate well, which makes it difficult for the borrowers to get their loans.
4. Income is the only thing that determines how much you can borrow. There are other factors that determine how much a borrower can loan. Things such as debts and other loans can affect how much you can borrow when applying for a home loan.

5. I’ve been self-employed for six months, so all of my income will count toward my Mortgage application. The borrower is required to have at least 2 years of employment in their current job.
6. I don’t make enough money to buy a home. In a Mortgage, you can easily pay a monthly payment because most banks can offer the lowest interest rates possible.
7. I should always refinance my Mortgage if the new rate is lower. Generally speaking, if refinancing can save you money, then it's a good decision. However, make sure to remain in the home long enough to offset the cost of refinancing or the refinancing will be useless.
8. All Mortgages are the same. This is completely untrue; all lenders have different types of loans, and some have restrictions for some loan types.

9. If you’re denied a Mortgage, you will never qualify in the future. In any case, if you have been denied, it doesn't mean that you will never qualify again in the future. It only means that your financial situation is not the best for a home loan right now.
10. Lenders will sell your personal information. Mortgage companies will never sell your personal information. Sit back, relax, and we'll do the rest!