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Mortgages Don’t Have to Be Spooky, Here’s Why

Mortgages dont have to be spooky

For many first-time home buyers, purchasing a home can be a scary process. There are a lot of rumors and spooky stories floating around about mortgage companies and mortgage payments, passed down from generation to generation.

To shed light on some of these tall tales, our team is debunking 3 of the most common myths surrounding mortgages and the truths behind the lore.

  • MYTH 1: When a Mortgage Company Pulls Your Credit Score, It Will Automatically Go Down

    Fact: Any new loan application requires a credit pull by your lender. During this process you may see a slight fluctuation in your score by 1-4 points, but ultimately it should not affect your home buying ability. This is not applicable for those who border the 550- range for credit. For these individuals, a fluctuation in credit even by a few points may lead to home purchase power challenges. 

  • MYTH 2: You Have to Have Perfect Credit to Receive a New Loan

    Fiction: You do not necessarily need a perfect credit score (750+) to receive a loan, however the higher your score the lower your interest rate will be. All circumstances are different, so we recommend consulting with one of our loan officers to better understand how your score impacts you.

  • MYTH 3: You Need to Put 20% Down on Your Home

    Fiction: To buy a home, you don’t need to make a 20% down payment. The “20% Down payment Myth” is widely circulated; passed down from parents to children; and college professors to students. It’s a terrific time to be a home buyer to break it down and here is how below:

    🔢By the Numbers:

    Home price: $400,000

    Down payment: 3.5% of purchase price

    Total needed for down payment: $14,000

    🔢By the Numbers (Couple):

    Average federal tax return (tax year 2021): $2,707

    2021 Stimulus Check(s) or Extra Income: $2,800

    Total saved for down payment: $5,507

As you can see, you're making a pretty good start on reaching your goal of $14,000 for a typical FHA down payment.

Applying for a mortgage loan does not have to be a terrifying experience. With Weber Mortgage, you’re supported every step of the way.

Since 1999, Weber Mortgage has turned clients into friends by giving them the advantage in the home loan process. Our experts find the right mortgage program for your needs and guide you through the process step-by-step. No gimmicks, just knowledge and skill.

Family owned, operated, and focused. We're Weber Mortgage. We're here to welcome you home. The Weber Mortgage team is here to help ensure that all of the mortgage tricks can turn into treats this season and every season.