Making Moves with Mandee
Busting Common Mortgage Misconceptions—What Every Buyer Really Needs to Know
Making Moves with Mandee: The Truths and Myths About Getting a Home Loan in Colorado
If you’re thinking of buying a home, you’ve probably heard some wild stories about mortgages, some true, some not-so-true! Let’s break down the real facts and fiction about getting a home loan in Colorado so you can make smart, confident decisions.
Truth #1: Your Credit Score Really Does Matter
Lenders use your credit score to determine your eligibility and interest rates. The higher your score, the better your loan terms, but you don’t need perfect credit to qualify for a home loan.
Myth #1: You Need a 20% Down Payment to Buy a Home
A classic misconception! Many loans, especially FHA and VA products, allow for much lower down payments. Some buyers purchase homes with as little as 3% down, and special programs help first-time buyers bridge the gap.
Truth #2: Pre-Approval Strengthens Your Offer
Getting pre-approved shows sellers you’re serious and ready to move quickly. It’s more powerful than pre-qualification, pre-approval includes actual verification of your financial details.
Myth #2: All Lenders Are the Same
Lender options and programs differ widely. Shopping around can reveal better rates, lower fees, and flexible solutions that fit your personal needs.
Truth #3: Your Debt Matters as Much as Your Income
Lenders look at debt-to-income (DTI) ratios, not just your salary. Managing debts and regular payments is key to loan approval.
Myth #3: You Can’t Get a Loan With Student Debt
Student loans do affect your DTI, but they don’t automatically exclude you from getting a mortgage. Lenders want to see responsible management.
Truth #4: Rate Locks Help You Plan With Certainty
Mortgage rates can change daily. Locking in your rate before closing protects you from market fluctuations and last-minute surprises.
Myth #4: A Mortgage Approval Guarantees Closing
Final approval requires continued financial stability, big purchases, job changes, or new credit inquiries before closing can put your loan at risk.
Truth #5: Self-Employed Can Buy, Too
It may take extra documents, but many self-employed buyers successfully get loans. Be ready with tax returns, profit-and-loss statements, and business verification.
Myth #5: The Loan Process Is Always Stressful
It can feel overwhelming, but with the right agent and lender, your loan journey can be smooth. Clear communication and up-to-date paperwork make all the difference.
Bottom Line:
Don’t let myths or old rumors scare you away from homeownership. The Colorado mortgage landscape offers more opportunity and flexibility than ever before. Want advice tailored to your situation? I'm here to answer questions, bust myths, and guide you from pre-approval to closing!
