Busting Common Mortgage Myths

St. Louis, MO – January 19th, 2024 – In the world of mortgages, misinformation can lead to confusion and missed opportunities. Let’s debunk some common mortgage myths and uncover the truths that can empower you on your homebuying journey!

Myth: You Need a 20% Down Payment

Truth: While a 20% down payment is often recommended, it’s not a requirement. Gershman Mortgage offers mortgage options with lower down payment requirements, making homeownership more accessible!

Myth: Your Credit Must Be Perfect

Truth: While a higher credit score can secure better interest rates, there are mortgage options available for individuals with less-than-perfect credit. Lenders consider various factors beyond credit scores.

Myth: Fixed Mortgages are Always the Best

Truth: The best mortgage type depends on your unique situation. While fixed-rate mortgages offer stability, adjustable-rate mortgages may be suitable for those planning to move in a few years.

Myth: You Can’t Get a Mortgage with Student Debt

Truth: Having student loan debt doesn’t automatically disqualify you. At Gershman Mortgage, we consider various factors, including your debt-to-income ratio, when assessing your mortgage eligibility.

Myth: You Must Stick to a 30-Year Term

Truth: There are various mortgage terms available, such as 15-year and 20-year options. Choosing the right term depends on your financial goals and circumstances.

Myth: Pre-Qualification and Pre-Approval are the Same

Truth: Pre-qualification provides a rough estimate, while pre-approval involves a more in-depth analysis. Pre-approval strengthens your position when making an offer on a home.

Myth: You Can’t Pay Off Your Mortgage Early

Truth: Most mortgages allow for early repayment. Paying extra towards your principal each month can accelerate the payoff process.

By dispelling these mortgage myths, Gershman Mortgage aims to empower you with the knowledge needed to make informed decisions about purchasing a home. Remember, understanding the facts is crucial on your path to homeownership. Stay informed, ask questions, and make choices that align with your financial goals. Happy homebuying!

If you’re interested in purchasing a home, it may be a good idea to sit down with a knowledgeable loan officer before you are ready to buy. Gershman Mortgage staffs only the best and brightest loan officers in the game and they will help you make the best decision for you and your family. When it comes to your affordability and how much money you want to put down on your new home, our loan officers can help you determine a price range that fits your budget and how much you’ll need.

When you are ready, contact a Gershman Mortgage Loan Officer to start your journey home today.

 

About Gershman: Communities, families, and homes are at the heart of what we do at Gershman Mortgage. Our founding principles are based on the core values of honesty, integrity, the entrepreneurial spirit, and putting our customers first. We are passionate and committed to customer service and strive to ensure that we exceed the expectations of our customers. We are a customer-centric company devoted to creating and maintaining long-lasting relationships.

NMLS #138063 16253 Swingley Ridge Road Suite 200 Chesterfield, MO 63017 (800) 457-2357 Equal Housing Lender.