Provided by: DVN Mortgage 

This Christmas season, the Five Golden Rings sound nice, but the other 11 days’ worth of gifts just sounds like chaos to me. Instead, let’s swap the birds and drummers for some much-needed knowledge about mortgage.

Here are twelve myths you may have been told about the home buying process, along with the truths you need to know.

Myth #1: Taking the lowest rate is always the best rate for you.

But what if you plan to be in the house for just a year? Instead, I would minimize your costs at closing and stick with the higher rate since it’s such a short period of time. It’s important to realize there is no cookie-cutter loan – we are here to help you find the best option for YOU.

Myth #2: Mortgage insurance always falls off.

This isn’t always the case. It really depends on the loan program. Sometimes it’s even referred to by another name like mortgage guarantee or home-loan insurance. To figure out if lowering your PMI (private mortgage insurance) is an option, give us a call.

Myth #3: It takes 60 days to close on a loan.

With our team, we have closed loans in as little as 10 days, but our typical timeframe is 21-30 days. If you’re building, we also help monitor your timeline for construction to keep things on track.

Myth #4: You need perfect credit to buy a house.

Not true! Affordable housing and options for a wide variety of borrowers are available. Maybe you’ve had your credit pulled and you never received a callback? That’s not how we work – we are here for the journey. Let’s look at your options.

Myth #5: I can’t use my local bank when I’m buying a house out of state.

This is a big misconception. Are you ready to get away from South Dakota winters? Well, we can finance your home wherever the sun shines, all over the country.

Myth #6: You need 20% down to buy a home.

Maybe the most common myth out there. We have many loan programs for you with as little as $0 out of pocket. Again, it’s all about what works for you and your financial goals, so come on in, and let’s talk those through.

Myth #7: My interest rate needs to change by at least 1% for a refinance to benefit me.

This really depends on the size of the loan and the term of your loan. The truth is, the longer you stay in the home, the less change there needs to be on the loan to make a difference.

Myth #8: One size fits all.

100% false. Our team prides itself on customized home loans that help you meet your financial goals. We help educate you about your options to empower you to decide what the best plan is for your mortgage.

Myth #9: If you’re denied a mortgage, you will always be denied a mortgage.

If you go to the doctor and they say something you’re unsure about, you usually get a second opinion. It’s the same with mortgage. Come to us and let us double-check what can be done.

Myth #10: I have so many student loans, I will never be able to buy a house.

There are a lot of calculations when factoring debt-to-income for loan approval. Just because you have student loan debt does not mean you won’t qualify. Student loans can actually be positive for your credit as long as you are making payments.