San Diego, CA (PRWEB) June 21, 2013
LoanLove.com, a new borrowers advice website founded just this April, has a mission to help consumers and borrowers alike in obtaining the latest information on mortgage lending trends, the real-estate market and the U.S. financial landscape for the purpose of helping them obtain a home loan they love. The new website is quickly becoming a trusted destination for current mortgage news and expert loan advice. The team at LoanLove.com is devoted to help empower both first time and experienced homeowners with valuable resources, first-class knowledge and connections to top-rated industry professionals. To fulfill this goal LoanLove.com is continually updating their website with new articles and guides, a recently posted one that reveals some of the most common first-time homebuyer myths.
The Loan Love guide says: “A lot of would-be homebuyers decide not to buy a home because they believe it’s too expensive or too complicated. Fact is, buying a home is a lot simpler than you might realize. Recognizing the most common myths about buying your first house – and knowing the truth behind the hype – is the key to helping you decide if homeownership is right for you.”
The first piece of advice for first time home buyers that the article gives is not to be discouraged thinking that they need a lot of money saved up for a large down payment. The article says: “Not too many years ago, lenders typically required big down payments – about 20% of the purchase price. But today, lenders are much more flexible, often accepting as little as 5% to 7% as a down payment.” Those who have served in the U.S. Army can also benefit from VA loans, which require 0% down payment. Whatever the potential home buyer’s situation is, a good lender can help them to find the right loan structure for their budget and lifestyle.
Another of the first-time homebuyer tips is not to be discouraged by imperfect credit. Although good credit does result in the best rates, perfect credit is not required to qualify for most mortgages. Lenders are aware that the aftermath of the recent housing bubble has left many consumers struggling to keep their credit up to par. As a result, they’ve become a little more lenient in the credit scores they require to qualify.
The idea that renting would be a more affordable option is also a reason some people do not want to commit to home ownership. Loan Love says: “Most mortgage payments are lower than rent paid for a similar home, and don’t forget: You’re building equity in your own home instead of helping landlords build equity in their properties. What’s more, fixed-rate mortgage payments are locked in for the life of the loan so you won’t get a nasty surprise increase in rent.”
A seemingly complicated mortgage application process may also be a reason some avoid buying a home. However, with online applications and quick decision processes the application and approval processes are easier and faster than ever before. Lenders want to make the process as simple as possible, and most lenders have online or on-call reps to help home buyers figure out any areas that are not clear.
These are few of the most common first time home buyer myths. Loan Love ends by saying, “Homeownership has historically been one of the best ways to build wealth and security for the vast majority of Americans. Don’t let these or other fears stop you from buying a home and taking the next step in securing a great future.”
For more information view the full first time home buyer guide at LoanLove.com.