The truth about 6 common mortgage myths

Separating fact from fiction

“Is now a good time to buy a house?” is a common borrower question that’s especially relevant in tough market conditions when prospective homebuyers may be even more vulnerable to common myths that may mislead them to hold off on their dream of homeownership. Buyers need someone they can trust to help navigate the ever-evolving housing market.

Be your borrowers’ source of truth: Providing clean and accurate answers to borrowers’ questions not only satisfies their immediate needs but also creates a positive ripple effect that can lead to future referrals. Keep this “cheat sheet” handy to debunk the 6 most persistent myths today’s prospective homebuyers believe:

• A 20% down payment is necessary.
• Private mortgage insurance (PMI) should be avoided.
• Higher down payments always result in better mortgage rates.
• A low credit score is a deal breaker.
• Down payment assistance programs are only for low-income buyers.
• Student loan debt is a barrier to homeownership.

Well-educated borrowers are more likely to refer friends and family and return to you for future needs, contributing to your long-term success! Get more insights from our blog post: Showing your borrowers all their options is even more important in a tough market.