Myths about home-ownership
Lenders evaluate mortgage applications a lot differently today than they did 10 years ago, and 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:
Myth: You need great credit to become a home owner.
Fact: You may still be able to buy a home with less-than-perfect credit… and remember: you can improve your credit profile over time.
Myth: You need to put a sizeable deposit down to buy a home.
Fact: There are many types of mortgage products and programmes that allow low and no down payments. But remember to factor in other costs such as transfer fees, property taxes, moving expenses, and repairs.
Myth: Lenders share your personal financial information with other companies.
Fact: By law, banks and other financial institutions are restricted in their use and disclosure of information about you. In some situations, you may choose to restrict the disclosure of your information if you don’t want it to be shared.
Myth: If you’re late on your monthly mortgage payments, you’ll lose your house.
Fact: If you have a financial hardship, like the death of your spouse or a medical emergency and fall behind, it’s possible to keep your home and get back on track if you communicate with your lender as quickly as possible.
Myth: You can’t get a mortgage if you’ve changed jobs several times in the last few years.
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’ve had a stable income.