First-Time Buyers' Myths About Mortgages
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.
- "Preapproved" and "prequalified" 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.
Source: "7 Myths Millennials Believe About Mortgage Lending," HousingWire (Dec. 2, 2014)