Expelling 7 myths about mortgages in Bay City, MI
1. To be prequalified means to be preapproved.
There are differences between the two, even though you need a letter for both. Answer a few questions about your financial situation and you will be pre-qualified in minutes. In most cases, pre-approval requires much more information. Mortgage Lenders in Michigan look at your financials before approving you. The amount of the loan is determined by how much the bank is willing to loan you if you are approved. Nowadays, a pre-qualification doesn’t mean much. Preapprovals are preferred by sellers because they provide a more accurate indication of your ability to purchase a home.
2. You’re likely to qualify for a mortgage if you’re pre-approved.
Many homebuyers find out later that they have been rejected from a mortgage after being approved for one. There are a number of reasons why this can happen. Change in employment, adding additional debt, and not having enough money to cover the costs of getting a mortgage are some of the most common reasons.
Make sure you don’t make any rash decisions once you receive a pre-approval for a mortgage. As soon as you have been pre-approved for a home loan, you should speak with your mortgage advisor or our expert Mortgage Lenders at Michigan to make sure you’re not jeopardizing your pre-approval.
3. Mortgages are difficult to obtain.
Among the classic misconceptions is this one. Traditionally, the mortgage process has been confusing and demanding. In the end, the lender is ultimately responsible. Because some lenders don’t communicate well with borrowers, borrowers have difficulty getting in touch with them. At PierPoint Mortgage, we strive to make mortgages as hassle-free and smooth as possible for our clients. Throughout the entire mortgage process, our team makes it as simple as possible for you. Our process makes us the best and most trusted mortgage company.
4. You can only borrow based on your income.
Loan amounts are determined by several factors, including a borrower’s income. The amount you can borrow to buy a home is affected by your debts, such as car payments and student loans. Together, these factors affect how much you can borrow. Contact our expert mortgage broker in Bay City for more information.
5. My mortgage application will consider all income I have earned for the past six months since I am self-employed.
In order to use your self-employed income as part of your mortgage calculations, you must meet the following criteria:
- A self-employment history of at least 24 months (2 years) is required.
- A 12-month self-employment period may qualify you if you have previous experience in the field and your income is equal to what you earned before becoming self-employed.
6. My income isn’t enough for me to buy a home.
The mortgage payment may be within your reach if you can afford to pay rent. Talk to our mortgage advisor and Mortgage Broker in Bay City about how much mortgage you can afford.
7. After locating a house I can think about financing it.
Before you start looking at homes, you should at the very least be pre-approved. Sellers are protected because they won’t think you can buy their house if they believe you can. Additionally, this protects you as a buyer from falling in love with a home, only to discover you do not qualify for it. Before you start looking for a house, you should find the best lender or a Mortgage Broker in Bay City. With a pre-approval, you’ll know what your top price range is, as well as any credit issues you may need to address.