3 Mortgage Myths – Debunked

information available on the web, it’s no wonder that myths have been created around the mortgage process. Before you make any decisions, it’s important to understand the truth behind these common myths. Read on to learn about three of the most common myths about mortgages and why they’re not true.

Myth 1: You have to have perfect credit to get a mortgage.

Many potential home buyers believe that the only way they can qualify for a mortgage is if they have perfect credit. However, this isn’t the case. While having good credit will help you get approved for a loan, there are plenty of options available for a mortgage in Toronto, even if your credit isn’t perfect. Your lender will take into account other factors, such as income, assets, and employment history, when determining whether or not you’re eligible for a loan.

Myth 2: Pre-approval means you’ll automatically get the loan.

Many people think that getting pre-approved for a loan means they will automatically be approved when they apply. This isn’t true. Pre-approval is a preliminary step that helps you determine the amount of loan for which you may qualify, but it does not guarantee approval. Your lender will still need to verify your information and assess your financial situation before they can approve or deny the loan.

Myth 3: You’ll always pay the same interest rate.

Many people mistakenly assume that once they have been approved for a loan, the interest rate won’t change. But the truth is that interest rates are constantly fluctuating in the market. Your lender may choose to adjust your rate depending on various factors, such as changes in your credit score or market conditions. It’s important to stay up to date on the current interest rate trends so you can make informed decisions when it comes to your mortgage loan.

To Sum It Up

By understanding the truth behind these common myths, you can make more educated decisions when it comes to obtaining a mortgage loan. Whether you need a loan for your first home or are looking to refinance, make sure you get all the facts before making any decisions. Don’t let these myths keep you from achieving your dreams of homeownership. Reach out to a trusted mortgage broker today to get started on the path to owning your own home!