You have always dreamt of that house, a perfect retirement gift to yourself. The only thing that has stood between you and this beautiful dream is simply the fear of the heckles of securing a good mortgage that won’t leave you perennially indebted and with a sour taste in your mouth.
Hey! This is a wake-up call… Are those mortgage fears real or unfounded? Have you been putting off your dream over mere myths?
What are the myths that may be stopping you from applying for a mortgage today?
- The down payment is way too high:
Many people have a misconception that down payments might be higher than 30%. This is simply not true as the average down payment is less than 15%. In fact some schemes allow down payments of less than 5%.
- Mortgages take too long to process:
You might be worried about the long process of mortgage approval, but how long is long? While many people believe mortgages take months to be approved, the majority of mortgages actually come through in less than 3 weeks.
- It probably costs more to buy a house than rent:
This in most cases, is untrue. In the short run, it might appear so but in the long run, it is cheaper, even with all mortgage expenses. People should realise that if mortgages are well tailored towards your individual needs, your loan repayments might even be lower than your rent.
- You’re finished if you lose your job and you have mortgage running:
Yes there is that risk. It is a long commitment and there are job uncertainties, but you won’t necessarily lose your house if you can’t repay. Several schemes allow options to break free from a lease. What is advisable is for you to jerk up your savings before you apply for a mortgage to cover months of job uncertainties.
- I might not even get it in the first place:
Lol, don’t be a pessimist. As long as your credit scores are up, you are likely to get it. So on your part, be easy on those credit cards, don’t breech your credit limits to ramp up your credit scores.
These are just some common myths. Do you know of any other? Do share below.