Rochester Real Estate | LOCAL Homes For Sale https://www.rochesterrealestateblog.com Rochester Real Estate | LOCAL Homes For Sale | Homes for sale in Rochester, NY, LOCAL Rochester real estate listings, market data, REALTOR® info, and high quality content updated every 15 minutes! Wed, 25 Jun 2025 11:50:30 +0000 hourly 1 https://wordpress.org/?v=6.7.2 https://www.rochesterrealestateblog.com/wp-content/uploads/2016/11/cropped-SITE-LOGO-512-x-512-1-32x32.png Top 11 Mortgage Myths To Be Aware Of When Buying A Home – Rochester Real Estate | LOCAL Homes For Sale https://www.rochesterrealestateblog.com 32 32 June Home Maintenance Checklist: 40+ Must-Do Tasks to Prepare Your Home for Summer https://www.rochesterrealestateblog.com/june-home-maintenance-checklist-summer-prep/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20501 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
May Home Maintenance Checklist: 30 Essential Tasks to Prepare Your Home for Summer https://www.rochesterrealestateblog.com/may-home-maintenance-checklist/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20484 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
April Home Maintenance Checklist: How To Prepare Your Rochester NY Home For Spring https://www.rochesterrealestateblog.com/april-home-maintenance-checklist/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20364 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
March Home Maintenance Checklist: Get Your New York Home Ready for Spring https://www.rochesterrealestateblog.com/march-home-maintenance-checklist/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20338 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
How to Buy a House in New York https://www.rochesterrealestateblog.com/buy-a-house-in-new-york/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19906 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
How to Sell a House in New York https://www.rochesterrealestateblog.com/sell-a-house-in-new-york/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19905 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
Risks of Buying a Non-Warrantable Condo In New York: What You Need to Know https://www.rochesterrealestateblog.com/non-warrantable-condo/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19796 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
What Builders Should Know About Spec Construction Loans In New York https://www.rochesterrealestateblog.com/builders-spec-construction-loans/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19795 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
Moving To The Finger Lakes Region Of New York | Guide To Relocating To The Finger Lakes https://www.rochesterrealestateblog.com/moving-to-the-finger-lakes-region/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19875 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
Navigating the Numbers: The Pros and Cons of Using Online Home Value Estimators For New York Real Estate https://www.rochesterrealestateblog.com/pros-cons-online-home-value-estimators/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19794 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
The Role of Location in Home Valuation In New York https://www.rochesterrealestateblog.com/role-of-location-home-valuation/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19768 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
Lowe’s vs U-Haul: A Review of Truck Rental Companies https://www.rochesterrealestateblog.com/lowes-vs-uhaul/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19758 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
Understanding the Importance of a Seller’s Property Condition Disclosure https://www.rochesterrealestateblog.com/property-condition-disclosure-statement/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19632 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
What are Delayed Showings and Negotiations in Real Estate In New York? https://www.rochesterrealestateblog.com/delayed-showings-negotiations/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19547 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
8 Viable Tactics to Selling Your Home and Moving Out of State https://www.rochesterrealestateblog.com/selling-home-moving-out-of-state/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19542 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
Unconventional Methods for Selling a House: Thinking Outside the Box https://www.rochesterrealestateblog.com/unconventional-methods-for-selling-a-house/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19519 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
Should I Sell My House Off Market: Pros and Cons Explained https://www.rochesterrealestateblog.com/sell-house-off-market/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19503 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
What is PITI and How Does It Affect Your Mortgage https://www.rochesterrealestateblog.com/what-is-piti/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19498 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
How To Set A Home Renovation Budget https://www.rochesterrealestateblog.com/home-renovation-budget/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19490 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
How Does A Co-Borrowers Credit Scores Affect A Home Purchase? https://www.rochesterrealestateblog.com/co-borrower-credit-score/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19474 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
New Construction Final Walk-Through Checklist: Ensuring a Seamless Home Inspection https://www.rochesterrealestateblog.com/new-construction-final-walk-through/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19458 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
Essential Tips for Pumping a Septic Tank: What You Need to Know https://www.rochesterrealestateblog.com/pumping-a-septic-tank/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19450 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
Can You Submit Multiple Offers On Homes At Once – A Legal And Ethical Analysis https://www.rochesterrealestateblog.com/multiple-offers-on-homes-at-once/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19414 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
How to Get Your Home Photo Ready for Real Estate Listings https://www.rochesterrealestateblog.com/real-estate-photo-ready/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19409 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
What Does a Home Builder’s Warranty Cover? https://www.rochesterrealestateblog.com/home-builders-warranty/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19394 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
July 2023 Greater Rochester NY Area Real Estate Market Update https://www.rochesterrealestateblog.com/july-2023-rochester-ny-real-estate-market-update/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19403 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
Who Pays Real Estate Commission When You Buy or Sell a Home https://www.rochesterrealestateblog.com/real-estate-commission/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19366 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
Quitclaim Deeds: What You Need to Know https://www.rochesterrealestateblog.com/quitclaim-deeds/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19358 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
What to Know About Selling a Home As Is for Cash https://www.rochesterrealestateblog.com/selling-home-as-is-cash/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19347 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
How to Know if My House Has Paranormal Activity https://www.rochesterrealestateblog.com/is-my-house-haunted/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19342 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
Why Find The History of a House https://www.rochesterrealestateblog.com/find-history-house/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19316 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
June 2023 Greater Rochester NY Area Real Estate Market Update https://www.rochesterrealestateblog.com/june-2023-rochester-ny-area-real-estate-market-update/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19313 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
What Does a Real Estate Lawyer Do? https://www.rochesterrealestateblog.com/real-estate-lawyer/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19181 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
May 2023 Greater Rochester NY Area Real Estate Market Update https://www.rochesterrealestateblog.com/may-2023-rochester-ny-area-real-estate-market-update/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19162 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
What to Know About Buying a Home For The First Time https://www.rochesterrealestateblog.com/buying-home-first-time/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19058 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
<strong>What Should a Buyer Look For at a Home Inspection?</strong> https://www.rochesterrealestateblog.com/what-look-for-home-inspection/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18983 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
Companies That Buy Houses For Cash Reviewed https://www.rochesterrealestateblog.com/companies-buy-houses-for-cash/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18889 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
Does Home Staging Work and What is The Cost? https://www.rochesterrealestateblog.com/does-home-staging-work/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18814 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
What to Avoid When Getting a Mortgage https://www.rochesterrealestateblog.com/avoid-when-getting-mortgage/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18797 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
<strong>5 Options For Replacing a Roof Reviewed</strong> https://www.rochesterrealestateblog.com/replacing-roof/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18771 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
What Are Restrictive Covenants in Real Estate? https://www.rochesterrealestateblog.com/restrictive-covenants/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18714 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
Can The Court Force The Sale of Your House in Divorce? https://www.rochesterrealestateblog.com/court-force-sale-divorce/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18693 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
Real Estate Agent vs. Broker: What&#8217;s The Difference? https://www.rochesterrealestateblog.com/real-estate-agent-vs-broker/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18650 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
How To Determine Square Feet In Your House For More Accurate Property Estimates https://www.rochesterrealestateblog.com/determine-square-feet/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18167 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
3 Things That Often Results in a Real Estate Agent Getting Sued https://www.rochesterrealestateblog.com/real-estate-agent-sued/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18133 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
The Top 5 Types Of Home Inspections Buyers Should Consider https://www.rochesterrealestateblog.com/5-types-home-inspections/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18119 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
The Pros And Cons Of Rent To Own Homes: What You Need To Know https://www.rochesterrealestateblog.com/pros-cons-rent-own-homes/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18104 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
5 Smart Things To Do Before Moving That Will Help Ease Your Transition https://www.rochesterrealestateblog.com/things-before-moving/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18084 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
How to Become a Real Estate Agent https://www.rochesterrealestateblog.com/become-real-estate-agent/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18071 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
Renting A House Or An Apartment: Which Is The Better Option https://www.rochesterrealestateblog.com/renting-house-apartment/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17871 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
The 5 Most Important Factors To Consider When Buying A House https://www.rochesterrealestateblog.com/5-factors-buying-house/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17851 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
What Buyers And Sellers Need To Know About An Appraisal Gap https://www.rochesterrealestateblog.com/appraisal-gap/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17827 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
Pros And Cons Of Renting With Roommates – What You Need To Know https://www.rochesterrealestateblog.com/renting-with-roommates/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17794 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
6 Things You Should Know About Buying Land https://www.rochesterrealestateblog.com/things-know-buying-land/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17773 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
How Long Should Home Sellers Wait To Respond To An Offer On Their Home? https://www.rochesterrealestateblog.com/home-sellers-wait-respond-offer/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17745 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
How To Buy A House With A Low Credit Score https://www.rochesterrealestateblog.com/how-to-buy-a-house-with-a-low-credit-score/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16819 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
Things To Consider When Shipping A Car https://www.rochesterrealestateblog.com/things-to-consider-when-shipping-a-car/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16248 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
Home Depot Truck Rentals: What to Know Including Pricing https://www.rochesterrealestateblog.com/home-depot-truck-rentals-what-to-know-including-pricing/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16156 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
16 Things To Do Before Listing Your Home For Sale https://www.rochesterrealestateblog.com/16-things-to-do-before-listing-your-home-for-sale/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16138 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
The Biggest Home Inspection Mistakes to Avoid https://www.rochesterrealestateblog.com/biggest-home-inspection-mistakes-to-avoid/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16112 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
How Your Credit Score Impacts Your Ability To Buy A House https://www.rochesterrealestateblog.com/how-credit-score-impacts-buying-house/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16086 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
Top Winter Home Selling Mistakes | 7 Errors Made While Selling A House During The Winter https://www.rochesterrealestateblog.com/top-winter-home-selling-mistakes/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16051 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
Top Winter Home Buying Mistakes | 11 Errors Made While Buying A House During The Winter https://www.rochesterrealestateblog.com/winter-home-buying-mistakes/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16013 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
What Address Change Form Should I Use At The Post Office? https://www.rochesterrealestateblog.com/address-change-form-post-office/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15981 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
What Does Contingent Status Mean in Real Estate? https://www.rochesterrealestateblog.com/what-does-contingent-status-mean-real-estate/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15956 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
DIY Renovation Ideas For Your Backyard https://www.rochesterrealestateblog.com/diy-renovation-ideas-backyard/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15937 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
How to Rent Your First Apartment Guide https://www.rochesterrealestateblog.com/how-to-rent-an-apartment/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15931 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
Tips For Selling A Home Virtually https://www.rochesterrealestateblog.com/tips-selling-a-home-virtually/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15907 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
The Complete Winter Storage Checklist For Your Belongings https://www.rochesterrealestateblog.com/winter-storage-checklist/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15885 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
Should I Waive My Home Inspection When Buying A House? https://www.rochesterrealestateblog.com/should-i-waive-my-home-inspection/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15870 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
The Biggest Self Storage Companies Reviewed https://www.rochesterrealestateblog.com/biggest-self-storage-companies/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15836 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
Earnest Money and House Deposits Explained https://www.rochesterrealestateblog.com/earnest-money-house-deposits-explained/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15760 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
Moving Mistakes To Avoid https://www.rochesterrealestateblog.com/moving-mistakes-to-avoid/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15568 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
Top Mortgage Myths | Demystifying Common Home Loan Misconceptions https://www.rochesterrealestateblog.com/top-mortgage-myths/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15102 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
First-Time Home Buyer Mistakes to Avoid https://www.rochesterrealestateblog.com/first-time-home-buyer-mistakes/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=14815 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
10 Tips For Adding Appeal To Your Home This Summer https://www.rochesterrealestateblog.com/10-tips-adding-appeal-to-home-this-summer/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=14237 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
Exploring The Merits of Smart Home Technology When Selling a Home https://www.rochesterrealestateblog.com/smart-home-technology-selling-a-home/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13782 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
Top Frequently Asked Questions From Home Sellers https://www.rochesterrealestateblog.com/top-frequently-asked-questions-home-sellers/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=2424 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
First Time Home Buyer Programs In Rochester NY &#8211; Updated January 2025 https://www.rochesterrealestateblog.com/first-time-home-buyer-programs/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock http://rochesterrealestateblog.com/?p=580 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
How New Doors &#038; Windows Can Boost Your Home Value https://www.rochesterrealestateblog.com/how-new-doors-windows-boost-your-home-value/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13643 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
Top 5 Things To Know When Flipping Your First House https://www.rochesterrealestateblog.com/5-things-to-know-when-flipping-your-first-house/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13574 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
What Are The Best Mortgage Options for Self Employed Borrowers? https://www.rochesterrealestateblog.com/mortgage-options-for-self-employed-borrowers/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13450 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
Top 10 Best Places To See Christmas Lights In Rochester NY https://www.rochesterrealestateblog.com/top-10-best-places-see-christmas-lights-rochester-ny/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=10236 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
What Are The PROs And CONs Of Multifamily Homes? https://www.rochesterrealestateblog.com/what-are-the-pros-and-cons-of-multifamily-homes/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13219 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
What Low-Cost Home Improvements Should You Make Before Selling Your Home? https://www.rochesterrealestateblog.com/low-cost-home-improvements-you-should-make-before-selling-your-home/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13114 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
15 Things Millennial Home Buyers Look At While Buying A House https://www.rochesterrealestateblog.com/15-things-millennial-home-buyers-look-at-while-buying-a-house/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13028 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
How Does A Fence Increase The Value Of Your Home https://www.rochesterrealestateblog.com/how-does-a-fence-increase-the-value-of-your-home/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12995 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
5 Simple &#038; Low Cost Fixes To Make Your Home More Appealing To Buyers https://www.rochesterrealestateblog.com/5-simple-and-low-cost-fixes-to-make-your-home-more-appealing-to-buyers/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12779 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
How To Improve A Homes Curb Appeal In Rochester NY https://www.rochesterrealestateblog.com/how-to-improve-a-homes-curb-appeal-rochester-ny/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12665 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
7 Ways to Create an Energy-Efficient Home While Conserving Your Budget https://www.rochesterrealestateblog.com/7-ways-create-an-energy-efficient-home/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12633 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
Hiring Movers Vs. Moving Yourself | The PROs &#038; CONs Of Each https://www.rochesterrealestateblog.com/hiring-movers-vs-moving-yourself/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12592 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
Should You Pay Off Student Loans Before Purchasing a Home? https://www.rochesterrealestateblog.com/pay-off-student-loans-before-purchasing-a-home/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12531 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
Should I Build A New Home Or Buy An Existing Home? https://www.rochesterrealestateblog.com/should-i-build-a-new-home-or-buy-an-existing-home/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=2497 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
Buying A Condo Vs. Renting A Condo | What Are The PROs &#038; CONs? https://www.rochesterrealestateblog.com/buying-a-condo-vs-renting-a-condo/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12402 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
9 Money Saving Moving Tips | How To Cut Costs When Moving https://www.rochesterrealestateblog.com/9-money-saving-moving-tips/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12341 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
How to Create a Proper Home Maintenance Checklist https://www.rochesterrealestateblog.com/how-to-create-a-proper-home-maintenance-checklist/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12300 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
5 Tips For Tenant Screening | How To Weed Out Bad Tenant Applicants https://www.rochesterrealestateblog.com/tips-for-tenant-screening/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12291 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
The Best Social Media Blogs For Real Estate From 2017 https://www.rochesterrealestateblog.com/best-social-media-blogs-2017/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12045 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
The Best Home Improvement Blogs From 2017 | Advice For Home Remodeling https://www.rochesterrealestateblog.com/best-home-improvement-blogs-2017/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12044 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>
The Best Mortgage Blogs From 2017 | Advice For Home Financing https://www.rochesterrealestateblog.com/best-mortgage-blogs-2017/ Tue, 22 Aug 2017 11:30:43 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12043 What Are The Most Common Mortgage Myths? [caption id="attachment_11565" align="aligncenter" width="450"]Top 11 Mortgage Myths To Avoid When Buying A Home Top 11 Mortgage Myths To Avoid When Buying A Home[/caption] One of the most important steps to buying a home is successfully obtaining financing, which is frequently done by getting a mortgage.  The mortgage process can be relatively easy for home buyers who have an understanding of the process. In addition to having an understanding of the mortgage process, it's also important to be aware of potential myths that may exist.  There are dozens of mortgage myths that exist and it's important to not believe something that isn't true. In this article we're going to discuss the top 11 mortgage myths that you need to be aware of when buying a home.  Falling for one of the following myths can make the process of getting a mortgage a disaster.

1.) A Pre-Qualification & Pre-Approval Are The Same

Many home buyers believe that a pre-qualification and pre-approval are the same thing, which is one of the most common mortgage myths.  There actually is significant difference between a mortgage pre-qualification and a mortgage pre-approval. One of the biggest differences between a mortgage pre-qualification and pre-approval is the information that's required. In order to obtain a mortgage pre-qualification, a borrower provides information regarding their income, employment, and debts to a lender which is then used to determine the potential borrowers likelihood they could get a mortgage.  The information that's provided to a lender is typically not verified until the borrower applies for their mortgage so you can imagine the problems that can exist if a borrower provides false or incorrect information. In order for a borrower to obtain a mortgage pre-approval, a lender is going to verify a borrowers credit, employment, income, and other financial information.  This allows a mortgage lender to make a better prediction as to whether a borrower will actually get funding for a home purchase since the information is verified. One of the worst mortgage mistakes made by home buyers is not obtaining a pre-approval and settling for a pre-qualification.  A home buyer with a pre-approval gives themselves a significant advantage over buyers who settle for a mortgage pre-qualification should there be a multiple offer situation. It's critical that when buying a home you don't believe that a pre-qualification and pre-approval are the same!

2.) Getting Pre-Approved Guarantees That You'll Get A Home Loan

[caption id="attachment_11567" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan! Top Mortgage Myths BUSTED! Getting Pre-Approved Doesn't Guarantee You'll Get A Home Loan![/caption] There are thousands of horror stories of home buyers who're approved for a mortgage only to find out at a later time they've been denied for their home loan.  One of the top 11 mortgage myths is believing that once you're pre-approved you're guaranteed to get a home loan. There are actually lots of reasons why a mortgage is denied after being approved.  Some of the most common reasons include changing jobs, adding additional debts, and not having enough money to cover costs of getting the mortgage. It's important that once you're pre-approved for a mortgage that you don't make any rash decisions when it comes to your financials.  If you've been pre-approved for a home loan and are thinking about making a financial change that you first consult with your mortgage professional to make sure you're not sabotaging your pre-approval.

3.) A 20% Down Payment Is Required To Get A Mortgage

A common mortgage myth that exists is that only potential borrowers who have 20% or more to put towards a down payment can get a home loan.  There certainly are some great mortgage products that reward borrowers who have 20% to use towards a down payment, however, it's not necessary in order to get a mortgage. An excellent tip for home buyers is to first determine which type of mortgage is best for their individual circumstances.  There are mortgage products available for buyers who have down payment percentages ranging from 0% to 20% or more! Many home buyers have a hard time that they can potentially buy a home with no money or very little.  There are some fantastic mortgage products for those buyers who may not have much money saved. It's important to note however that there are PROs and CONs of buying a home with a small down payment.  It's recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.

4.) Perfect Credit Is Needed To Get A Mortgage

Credit is very important when applying to get a mortgage to buy a home, however, one of the most common mortgage myths is that only borrowers with perfect credit can get a mortgage.  If a potential borrower has a credit score of 450, getting a mortgage will be highly unlikely, but a potential borrower with a 600 credit score might still be able to obtain home financing. Credit scores impact the interest rate a borrower is offered and also whether a borrower is approved for a loan, but an 800+ score isn't necessary.  There are many mortgage products that exist that're tailored to help potential borrowers with 600-650 credit scores. It's obviously not recommended to strive for credit scores of 600-650, however, buyers who believe they don't have perfect credit shouldn't completely give up on the idea of getting a mortgage.  If you believe you have below average or average credit, follow these helpful tips for improving credit scores to buy a home because you don't need perfect credit to get a mortgage!

5.) Only Your Income Determines How Much You Can Borrow

[caption id="attachment_11568" align="aligncenter" width="450"]Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow! Top Mortgage Myths BUSTED! Income Is NOT The Only Factor That Determines How Much You Can Borrow![/caption] The amount of income a potential borrower makes is absolutely important, however, it's not the only factor in determining how much they can actually borrow.  One of the most frequently asked questions about mortgages relates to how much the borrower can actually spend on a home. It's not unusual to hear a potential buyer say, "I make $100,000 a year, how come I can't buy a more expensive home?"  Well, if a buyer makes $100,000 a year but has thousands of dollars in student loan debt, it's going to impact the maximum price of a home they can purchase. Debts, such as student loans impact how much you can borrow to buy a home for sure, especially with millennial home buyers.  There are other factors as well such as credit scores and the down payment percentage.  Income is only one piece of the puzzle when it comes to determining how much a home buyer can borrow.

6.) It's Always Best To Get A 30 Year Mortgage

The thought process that mortgages with the longest term is always the best is another one of the top 11 mortgage myths.  Many home buyers believe that getting a 30 year mortgage is the best but are potentially missing out on a better mortgage product. Why in the world would a 15 year mortgage be better than a 30 year mortgage?  While the monthly payment will be higher on a 15 year mortgage when comparing to a 30 year mortgage, the amount of total interest paid is significantly lower.  Also, the amount of equity that a buyer has in their home grows faster with a 15 year mortgage than it will with a 30 year mortgage. This is only one reason why a 30 year mortgage isn't the best for some borrowers.  30 year mortgages are great for borrowers who haven't saved money for down payment or who don't have a lot of reserve money available, but it's certainly not always best for everyone.

7.) All Mortgage Brokers & Lenders Are The Same

One of the most ridiculous myths in real estate is that all agents are the same.  The myth that all mortgage brokers and lenders are the same is one of the top mortgage myths. There are many things that differentiate mortgage brokers and lenders.  First and foremost, there is a difference between a mortgage broker and a mortgage lender, which many buyers don't even realize.  Picking a mortgage company when buying a home is extremely important because they aren't all the same. Each and every mortgage broker and mortgage lender offers different mortgage products, charges different fees, offers different interest rates, and has different mortgage guidelines.  It's suggested when buying a home that you look into a few different mortgage companies to make sure you're getting the best mortgage for your individual circumstance.  An experienced real estate agent will also be able to explain why they've used certain mortgage lenders in the past and provide a few suggestions to make sure you're using a solid company.

8.) FHA Home Loans Are For Borrowers With No Money & Poor Credit

One of the most popular mortgage products is the FHA home loan.  The FHA home loan, which is a loan insured by the Federal Housing Administration, and is very popular among first time home buyers. The belief that FHA home loans are only for borrowers with no money and poor credit is another common mortgage myth.  Like with anything, there are positives and negatives of FHA mortgages. FHA home loans are definitely a great option for borrowers who don't have a significant down payment and lower credit, but that doesn't mean that only borrowers that fit that criteria take advantage of FHA home loans.  The FHA home loan interest rates are often the lowest available for borrowers, which is a reason why a borrower with great credit and money available would take advantage of an FHA loan.

9.) If You're Denied For A Mortgage Once You'll Never Be Able To Get A Mortgage

[caption id="attachment_11569" align="aligncenter" width="450"]If You're Denied For A Mortgage You CAN Get Approved In The Future! If You're Denied For A Mortgage You CAN Get Approved In The Future![/caption] Many potential buyers believe that once they've been denied for a mortgage, they'll never be able to get a mortgage again.  This is another popular mortgage myth that exists and often discourages potential buyers from working towards getting a mortgage in the future. If you happened to be turned down when applying for a mortgage, don't fret.  By following the proper step by step directions to getting a mortgage after being denied, you CAN get a mortgage in the future! Tips such as paying off debts, paying bills on time, and improving credit scores can help work towards the ultimate goal of securing a mortgage if you've been turned down in the past.  It's important that you don't get discouraged after being turned down for a loan and fall for this common mortgage myth because it is possible.

10.) Paying Off A Mortgage As Quick As Possible Is Always Best

There aren't many people who enjoy being up to their eyeballs in debt and certainly a mortgage is one of the top debts someone can have.  It makes sense to pay off a mortgage as quick as possible than, right? Paying off a mortgage as quick as possible is actually not always the best idea, which makes it another popular mortgage myth.  Mortgage interest rates have remained low for several years now, so it's very possible there are better debts to pay off before a mortgage. For example, if you had a personal loan of $50,000 at an interest rate of 10% and a mortgage loan of $50,000 at an interest rate of 3.5%, it makes more sense to pay off the loan with the higher interest rate.

11.) After a Bankruptcy, Judgments, Or Collections You'll Never Be Able To Get A Mortgage

It's unfortunate when people have a bankruptcy or to have a bunch of judgments filed against them.  Another one of the most common mortgage myths that exists is that after a bankruptcy, judgments, or collections are filled against someone that they'll never be able to get a mortgage again. Depending on whether a bankruptcy is a Chapter 7 or 11, there are a minimum number of years that must pass before you'd able to secure mortgage financing.  It's important that if you do have a bankruptcy or judgments that you discuss with an experienced mortgage consultant about the steps to take to secure financing in the future.

Final Thoughts

As you're preparing to get a mortgage to buy a home, it's vital that you don't fall for any of the above mortgage myths.  Believing these crazy myths can make the mortgage process a miserable one. If you happen to hear something relating to mortgages that seems a little crazy, ask an experienced mortgage consultant or real estate agent.  They should be able to help you identify whether or not what you've heard is just another mortgage myth or if it's a fact.

Other Helpful Home Financing & Mortgage Resources


If you're thinking about buying a home in Rochester NY, make sure that you're aware of the above mortgage myths.  These mortgage myths often leave potential buyers believing they have no chance at getting a home loan.  If you aren't working with a top Rochester NY real estate agent, contact me so that we can discuss your home buying situation!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner

About the authors: The above article "Top 11 Mortgage Myths To Be Aware Of When Buying A Home" was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.  With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>