7 myths millenials believe about mortgage lending
TRANSCRIPT
7 MYTHS MILLENIALS BELIEVE ABOUT MORTGAGE LENDING
liz kroft | realtor®mainstream real estate group
navigating the puzzle
of home buying
but first,
some numbers…
in 2015 millennials are expected to be a driving force in the housing industry
(most will be first-time homeowners)
in the next 1-5 years
42% of millenials 31% of gen x
want to buy a home
so, here are 7 MYTHSfirst time home-buyers might believe
MYTH #1
TIGHT LENDING REQUIREMENTS
THE TRUTH
• consider your financial situation• realize requirements may not be so tight• talk to a reputable lender • look into low down payment plans
THE TRUTH
• consider your financial situation• realize requirements may not be so tight• talk to a reputable lender • look into low down payment plans
remember:
there are OODLESof types of loans
out there
MYTH #2
NO NEED TO CHECK YOUR CREDIT
THE TRUTH
buyers must:
1. check up on their credit before they start the mortgage process
2. be familiar with what is on the credit report as well as their score
DUH(sorry, that one’s kinda obvious)
MYTH #3
PRE-APPROVED = PRE-QUALIFIED
THE TRUTH
PRE-QUALIFICATIONan estimate based solely on a buyer’s
self-stated income to give an idea of how much home they can afford
PRE-APPROVALlenders pull credit and other info to
determine a more accurate picture of what the buyer can afford
MYTH #4
STEP 1: FIND A HOMESTEP 2: TALK TO A LENDER
THE TRUTH
along with getting pre-approved, all the details a home shopper has
will not matter until a lenderlooks into the specific situation
in today’s market offers aren’t taken as seriously if a buyer is not fairly far along in the process with their lender
you have to know how much house you can afford before you go shopping
MYTH #5
20% DOWN PAYMENT, OR ELSE
THE TRUTH
nope.there are plenty of loans out there with a wide range of
down payment options
just remember
the smaller the down
payment,
the BIGGER the monthly
payment
remember: the smaller the down payment, the bigger the monthly payment will be
MYTH #6
BUYING A HOME FOCUSESONLY ON A BUYER’S WANTS
THE TRUTH
wants are important,but don’t let feelings overrule logic
balance what you can afford with your absolute must haves
MYTH #7
HOME INSPECTIONSARE UNNECESSARY
THE TRUTH
it is in your best interest to know everything about what you’re buying
inspections can identify big or costly issues that might not be visible when you walk through the house yourself
you would be amazed by what many inspectors
find
don’t be shy, speak with a lender today even if you aren’t planning to buy for a few years
there you go!
LIZ KROFT
REALTOR®Santa Cruz & Campbell, California
d: 408.502.7011 | c: [email protected] www.lizkroft.com
calbre 01937727
If you have any questions,I would love to help in any way I can
