Did you know misconceptions and myths are what holds would-be homebuyers back most in Metro DC? Buying a home is indeed one of the biggest steps you will ever take, but don’t allow what you assume is true or required to become fact without first doing the research.
As your local real estate experts in Washington DC, Bethesda, Chevy Chase, and Northern Virginia, The Estridge Group is happy to help you clear a few things up! Below are three myths surrounding mortgages that may be keeping you from purchasing your dream home in DC, Maryland, and NoVA:
Myth: Your best credit scores will be used
When you apply jointly with another borrower for a mortgage in Metro DC, your lender will take the middle of three credit scores from the three credit reporting bureaus, then use the lowest score between the two borrower’s middle scores. For instance, if your middle score was 780, but your co-borrower’s middle score was 700, many lenders’ decisions would be based on the 700.
Myth: Your quoted rate is the one you’ll secure
We’ve emphasized the importance of shopping around for a mortgage rate in past blog posts, but it is important to note that your quoted rate is not necessarily the one you will secure. Unless you are locking in the rate that day, the rate quotes are subject to change. You will find you need to gather quotes throughout your home buying journey until you’ve found the right property and are ready to lock down a rate.
Myth: Fixed-rate mortgages are the only option
While 30-year fixed-rate loans are common among homebuyers, they are not the only option and may not be the right option for you. The rate and payment with a 30-year fixed-rate mortgage will never change, but keep in mind that the longer the loan is stretched, the higher the rate. Ask yourself how long you will stay in the home you’re planning to purchase as an adjustable-rate mortgage could be a better fit.
Do not hesitate to contact The Estridge Group with any questions about buying a home in Washington DC, Bethesda, Chevy Chase, and Northern Virginia!