Whether buying a new house or refinancing your older one, applying for a mortgage can be tricky. Securing a housing loan always demands a load of requirements, and it always comes with hidden fees.
Aside from these problems, securing a mortgage can also be confusing. To help you with these, we’ll try to debunk the three major mortgage myths most homeowners encounter.
1. You can skip the application process when refinancing with the same company.
Many people make refinancing deals with their old mortgage companies because they think that they are no longer required to submit documents and undergo a rigorous process of application. This is not the case.
Whether it’s your second time securing a housing loan for the same company, you’re still required to submit pertinent documents such as proof of income, insurance, credit score verification, and more.
Because of this, it’s better to find a new company with a better deal than your old one.
2. Everyone can get low mortgage rates.
While many mortgage companies offer low monthly premiums, not everyone is qualified for them.
Just like any form of loan, you need to have a good credit score, an acceptable income range, and an excellent loan history. Without all these, you can’t secure a low rate for your mortgage.
3. Because of all these mortgage providers, getting a loan is easy.
There is indeed a sudden boom in the number of mortgage providers, but it doesn’t mean it makes the application easier.
There has been a significant increase in the demand in the housing sector. This means that more people are looking for housing loans these days. This means that the competition among homeowners is more complicated than before.