Michael Mahoney - Boston Realtor with Century 21
Michael Mahoney
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7 Myths About Mortgages Today

Myths About Mortgages Today: Misconceptions Which Prevent People from Buying a Home

  1. You need 20% down- There are MANY programs that allow you to put as little as 3% down. This can be less money than putting – First, last and security deposit on a rental. Here are some homes you can purchase for less than $2200/month with a small downpayment
  2. The Lender with the best rate is where I should go. This is very misleading- You want to be sure the there is a Mortgage Officer that answers your calls and communicates well with all parties involved. Can they meet your commitment and closing dates? There are many steps in the mortgage process – you need a reliable lender- not the one with the lowest rate
  3. A 30 year fixed is the best. How long do you plan on staying in your new home? Is it a starter home where you will be there less than 5 years then upgrade? Or are you are in the area for work/school for a few years? Maybe you should consider an Adjustable Rate mortgage- The rates are typically less than a 30 year fixed. You could save more money with and Adjustable Rate
  4. If I start working Overtime or start getting bonuses- I can use that towards my income. Most Mortgage products require that you have been getting overtime and bonuses for at least 2 previous years from the SAME employer.
  5. I have to save the money for down payment” You can have 100% gift funds for most mortgage programs. Family members can give you ALL the funds to buy a home.
  6. Non-Owner Occupant cosigners can be the sole income provider for your home. You may be a student and not making much income- Your Parents can cosign and buy that condo for you as Owner Occupied. Or you have elderly parents that need a smaller place- the adult children can Co-Sign
  7. A cosigner with good credit score can “compensate” for another’s low credit score- Good Credit is VERY important for everyone on the mortgage- A co-signer’s good credit does not help someone else’s low credit score

You can improve your credit pretty easily. There are local professionals who can help clean up your credit easily with targeted strategies. If you are looking to enhance your credit rating, check out Steven Burman and his 7 steps to improve your credit score

Get the report on how to get a mortgage with a Little Credit

 

 

It is always best to speak with a lender few months before thinking about buying a home and find out what is best for your individual situation. I work with several reputable lenders who can provide solid advice to prospective purchasers.  A couple of local lenders who I trust are:

Harry Brousaides of Northstar Mortgage

Thea Simolari of The Mortgage Network

Eric Douglas of New American Funding

 

Recent Headlines from the Mortgage Industry

Mortgage Lending Sees Biggest Quarter Since 2005

Low mortgage rates offsetting home affordability issues, NAR Says

 

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Areas covered by Michael include: Boston, Dedham, Milton, Dover, Westwood, Norwood, Medfield, Walpole, Sharon, Canton, Stoughton, Randolph, Avon, Norfolk, Wrentham, Franklin, Foxborough, Mansfield, Plainville, Medway, Millis, Sherborn, Holliston

 

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5suzannechapman1208

I selected Mike after having a very unsuccessful experience with a previous broker. He had excellent ideas in helping to sell my house and continued to advertise it with a fresh perspective. His experience helped in a number of ways and I only wish we had... (more)

5goodlife99

This is the second property I have sold in Weymouth MA with Mike as my broker. He research the area and give you all the information you need to decide what to list your property for, so it sells timely. He also helps review and negotiate all offers and is... (more)

5SullyLemmons

We had been trying to sell our condo for well over a year and decided to give Mike a shot at it as he came well recommended. It was not easy for him but he persisted and had success. Even though it wasn't a big sale or profit for him, he acted as though it... (more)

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