
5 HOME BUYING MYTHS
There are a lot of myths about buying a home that are easy to bust.
Here are a few of the big ones:

I need a 20% down payment. This goes back to the days when lenders had far fewer options. Now, you can get a mortgage for much less money down.

I have to dig up a lot of paperwork. A lot goes into qualifying you for a mortgage, but these days much of the verification process — like collecting pay stubs, bank statements and tax information — can be done automatically by your mortgage broker and lender.

It will take a lot of time. A good mortgage broker can take your application and give you a pre-approval letter in minutes. Many even let you do it yourself online.

My bank is the best place to get a mortgage. Banks don’t offer many mortgage choices. An independent mortgage broker in your local community can help you find the best options and the lowest rates.

I need to be “settled down” first. Even with a low down payment, monthly mortgage payments are often lower than rent prices. Plus when you buy a home, you’re paying yourself, not your landlord.
WHAT TO EXPECT DURING THE LOAN PROCESS
The mortgage process is pretty straightforward, but knowing what to expect will help everything go smoothly.
STEP 1: ELECTRONIC LOAN APPLICATION AND DOCUMENT PACKAGE
- You’ll receive a secure link to E-sign your documents, saving you valuable time.
- A Loan Estimate is included in this package. This is an itemized list of the fees that you may be charged for your home loan transaction.
STEP 2: Loan Approval
- Once your loan application is reviewed, you may be asked for additional documentation.
- Return the requested documentation as quickly as possible.
STEP 3: Appraisal
- A licensed appraiser will need to inspect the property and determine a value. (If your loan application receives a Property Inspection Waiver, no appraisal will be needed.)
- The appraisal cost is typically paid prior to the inspection.
STEP 4: CLOSING DISCLOSURE
- This is the final list of fees that you will be charged for your loan.
- You will receive this document at least three days prior to your closing.
STEP 5: VERBAL VERIFICATION OF EMPLOYMENT
- A call will be placed to your employer; it’s important they respond promptly.
STEP 6: FINAL CLOSING
- When your loan is fully approved, your employment has been verified, and you are ready to close on your home, we will schedule a convenient time to sign the final documentation.