**If you need a referral to a lender, let us know. We have a few we really like.**

​

Talking to a lender is a great first step when buying a home. You can't start looking for homes if you don't know what you qualify for. Since there are some misconceptions about lending, it's smart to figure out this piece early. 

 

Here are a few myths about mortgage loans we'd like to debunk for you:

 

#1: I should shop for a lender based on the interest rate and fees they offer.

​

Busted: Most rates and fees are comparable between lenders. What matters is working with a lender who sees you as a person and not a file so they are responsive. Someone who will advocate for you if we run into any issues so your loan will get closed on time.

 

In our experience, people have more success with local lenders.

 

#2: Only first-time home buyers can use FHA or other assistance programs.

 

Busted: FHA is not a first-time buyer loan. The rule is you can only hold one FHA loan at a time. For many assistance programs you don't have to be a first-time buyer as long as you are purchasing a personal residence and don't own another property.

 

#3: I need 20% for my downpayment

 

Busted: Most buyers put down 3%-5% on their primary residence (aka, home they will live in).

 

Even as an investor you may be able to avoid a larger down payment if you are willing to move into the new property or qualify for a second home purchase.