Common Cleveland Area Homebuyer Myths About Mortgages

According to Realtor.com, 2015 will be the year of the first-time homebuyer. First-time buyers have been missing from real estate markets for the majority of this year and one reason for that is misinformation about mortgages. Many new homebuyers have bought into myths about obtaining a mortgage in the Cleveland area that simply are not true.

Here are a few popular myths Millennials believe about mortgages and remember, if you’re a first-time homebuyer in Medina or Cuyahoga CountyBOLD Real Estate Consultants can clear up any questions you might have about making a home purchase.

  1. Pre-approved and pre-qualified are the same thing
    Getting pre-qualified, as an Ohio homebuyer, refers to the estimate a mortgage banker gives based on the buyer’s stated income. This is simply an idea of how much you can afford in Cleveland area real estate. Pre-approval is the next step in the process and requires lenders to pull your credit and provide a more accurate estimate.
  2. You need 20 percent down to purchase a home
    The down payment is perhaps the most popular myth in real estate for new homebuyers. You do not need 20 percent down to make a purchase, however it is recommended. There are programs in place for buyers in which they can put as little as 5 percent down. Ask BOLD Real Estate Consultants about what is available in our area.
  3. Lending restrictions are too tight
    Buyers new to the Medina and Cuyahoga County real estate market often fear the lending requirements necessary to purchase a home. However, know that these may not be as tight as you think they are. In working with an experienced lender and finding a low down payment plan, first-time homebuyers are better off than they realize.

BOLD Real Estate Consultants can provide recommendations for local service providers, including mortgage and finance experts. We are also here to answer any questions you have about buying a home in Medina, Valley City, Columbia Station, North Royalton, Brunswick, Hinckley or Strongsville. Contact us today!

Sajag Patel
BOLD Real Estate Consultants
440-879-7260

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