Myths Related To the Conventional Home Loans

The real estate environment is never stable, and we can find varying trends in this sector. Similarly, the interest rates for real estate mortgages are also never stable. You may notice an increasing or decreasing rate. From FDA loan to VA loan, there are several financing options for buying a house. You can know the loan details from a mortgage lender in Colorado. However, you can find several myths, related to conventional home buying mortgage.

20% down payment- It is must for every home buyer

Although 20% down payment enables you to avoid mortgage insurance, there is no obligatory rule. Based on the loan program, you can find a variation to this down payment. For instance, it is only 3% down payment, needed for FHA loan. To get most of the conventional loans, it starts from 5%. There are also loans, having no need of a down payment.

You must have high credit score

For some loan programs, your credit score has to be at least 580. Although credit score is one of the important factors to take a loan, you may be eligible for a conventional loan. You may also speak to Mortgage Lender in Colorado to know whether he has set any eligibility criteria. The lenders may also focus on your monthly debts, income and your rent payments on the past months. These factors play a role in getting the chosen mortgage.

You have to do a permanent job to get a home loan

It is another myth among the home buyers. The self-employed persons, contractors, freelancers and employed office workers have the chance of applying for mortgage. However, based on your status, you need to submit the essential documents.

Thus, you must keep away from these mortgage myths. You may look for Mortgage Lender in Colorado to know the details on loan scheme.

Myths onthe Mortgage Refinancing Option

Refinancing is a common term to the property investors. However, you may find some misconceptions, related to this refinancing. Thus, while you are going to Refinance Mortgage Colorado, you have to know about the truths about refinancing. We have shared with you those myths on refinancing.

Refinancing is right when the interest rate is low

Most of the property owners think that they will get value from refinance loan only if there is a very low interest. However, you can find other reasons to refinance mortgage in Colorado. Originally, the borrowers may have30-year loan, and they can refinance it to a 15-year loan scheme for saving money. Although it can increase the amount of your monthly payment, you will have profit in the long run.

Refinance Loans- Making it tough to sell the house

Your refinance mortgage in Colorado does not act as a type of second loan. You have to repay the loan before selling the house. You may also get the repayment amount as the proceeds from your home sale. Refinance loan helps in the replacement of your first mortgage. It never interferes with your selling of a house.

There is no credit check for refinancing

It is another myth on mortgage refinancing. You may have found ads, saying that you will not need to show credit report for refinancing. However, most of the lenders will ask you to submit your credit details. The most important thing is that while you have higher credit score, you will have the loan at a lower interest rate. That is why you have to focus more on the credit score for refinancing mortgage.

Now, you may search for lenders to avail the refinance mortgage. You have to keep away from the myths on refinancing a loan.