Common Mortgage Myths That Could Cost You Money

Misinformation about mortgages is widespread, and believing common myths can lead borrowers to make costly mistakes. Separating fact from fiction is essential when making one of the largest financial decisions of your life.

Myth #1: You Need 20% Down to Buy a Home

While a 20% down payment can eliminate private mortgage insurance, many loan programs allow much lower down payments. Some buyers qualify with as little as 3% down, and certain programs offer zero-down options for eligible borrowers.

Myth #2: You Should Always Choose the Lowest Interest Rate

The lowest rate isn’t always the best deal. Points, fees, loan terms, and long-term goals matter. A slightly higher rate with lower fees could save more money depending on how long you plan to stay in the home.

Myth #3: Pre-Qualification Is the Same as Pre-Approval

Pre-qualification is a preliminary estimate, while pre-approval involves verified financial documentation. Sellers take pre-approval far more seriously, especially in competitive markets.

Myth #4: Self-Employed Borrowers Can’t Get Mortgages

Self-employed borrowers can qualify, but documentation requirements differ. With the right guidance, many self-employed individuals successfully secure mortgages.

Avoiding these myths requires accurate information and professional support. At https://floridamortgage.loan/, experienced mortgage specialists educate clients, debunk misconceptions, and provide clear guidance tailored to each borrower’s situation.

Making decisions based on facts — not myths — can save you money, stress, and time.