After all of the trouble with mortgage debt and foreclosure, many potential home buyers are skeptical about the process these days. Although the market isn’t what it once was, there are still some good aspects of the mortgage industry today. Understanding the truth behind a few of the current mortgage myths can help a potential buyer better evaluate whether buying a home is right for them.
I’ll End Up In Foreclosure
Foreclosure is a very real threat for anyone owning a home in today’s economy, but the threat is something that can be controlled. In many cases, foreclosure comes about due to unforeseen circumstances that create unmanageable financial hardships. However, preparing for such an event can minimize the risk of foreclosure. Having enough savings, buying a home with a payment on the lower end of your budget and knowing options for resolving mortgage debt are ways to set yourself up for home owning success.
I Won’t Qualify For A Good Loan
Many people are eager to take a chance on a home simply because interest rates are at their lowest of all time. However, not everyone is prepared for the mortgage application process and can be denied or offered a sub-par loan. The best way to qualify for good loan with favorable terms is to be prepared. Ensure your credit is up to standard and shop around for the right lender offering a loan you can be happy with.
There Isn’t Anything Good To Buy
The real estate market is very different from where it was a few years ago. New builds are rare and there are many good homes sitting on the market being passed over because they need a little renovation. In today’s economy, renovation equals money and many people simply don’t think they can afford to upgrade a home. Foreclosures and short sales are also clogging up the market and many people are too afraid to take a chance. However, if you are willing to put a little sweat equity into a lower priced home, you can end up with your dream home in a few years for less than you would pay for that new, upgraded home.