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4 Mortgage Myths Dispelled for Today’s Homebuyers
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Sponsored by FOCUS Real Estate
Today’s homebuyers are awash in information that can sway what is probably the biggest purchase of their lives. Especially to those new to the home search, it can be difficult to wade through sometimes-conflicting advice on home mortgages, particularly when guidelines that were generally accepted in the past may no longer apply in today’s home-buying environment. Here are four mortgage myths today’s homebuyers might encounter during their home search. You need 20 percent down to secure a loan
Following the recent mortgage crisis in the late 2000s, many housing lenders began to require at least a 20 percent down payment from buyers in order to reduce their own loan risk. Twenty percent down is still a good practice, but in expensive markets like Greater Boston, it can be extremely difficult to amass a down payment in the tens or even hundreds of thousands of dollars -- especially for first-time homebuyers who do not have the ability to leverage the proceeds of a previous house sale.