Lenders evaluate mortgage applications a lot differently today than they did even 10 years ago. Additionally, even more has changed in the last 20 years. What used to close the door to home ownership may not be a factor today.
Here are some common home ownership myths:
Fact: You may still be able to buy a home with less-than-perfect credit. Remember, you can always improve your credit over time.
Fact: There are many types of mortgage products and programs that allow low to no down payments. But remember to factor in other costs such as:
Fact: If you are a legal resident, you can purchase a home in the U.S.
Fact: Having a bank account is always a good idea and helps you establish credit. However, lenders can approve you for a mortgage even if you do not have a bank account or credit cards. You'll likely need to keep records showing a history of payments you have made for items such as rent, utilities, and car payments.
Fact: By law, banks and other financial institutions are restricted in their uses and disclosures of information about you. In some situtations, you may choose to restrict the disclosure of your information if you don't want it to be shared.
Fact: If you have a financial hardship, like the death of your spouse or a medical emergency and fall behind, it is possible to keep your home and get back on track if you contact your lender early.
Fact: Not true. You can change jobs several times and still get a loan to buy a home. Lenders understand that people change jobs. The important thing is to show that you have had a stable income.