What are a Few Mortgage Misconceptions for Home Buyers?

After a few months of the 2014 buying season, it's time to look at what a few of the misconceptions some home buyers have about mortgages. Most real estate transactions involve a mortgage and it's si-highlight--primary to find the peace of mind you deserve throughout the process. Here are a few of the things many buyers just don't understand.

Pre-Approval

Many buyers don't understand how si-highlight--primary a pre-approval really is and why. Most buyers start shopping for homes online or even in person before they have a pre-approved mortgage in place. This is a mistake in many ways. When you get a pre-approval, you can zero in on the price range for your home. It will also help to provide the necessary confidence you need and the seller needs to move forward with the transaction.

Will You Qualify for a Loan?

Nearly three out of four homebuyers wonder if they will even qualify for a mortgage. This is due to the belief that the mortgage industry is still very stringent. However, many new mortgage lenders have emerged and provide less restrictive lending standards. It's not as hard to qualify for a mortgage as it once was.

Providing Your Ability to Repay the Loan

Another misconception for many is how they can go about proving their ability to repay the loan. Typically, this is done with W-2's, paystubs or bank statements. However, many buyers don't match the numbers from these statements on their mortgage application. Make sure you understand your real income and don't just guess when filling out your mortgage application.

It's not as hard to get a mortgage as you might think. However, you should still receive a pre-approval before you start shopping for your new home. If you're not sure where to start, contact a professional real estate agent to help put you on the path to a successful home buying experience.