Buying a new home can be exciting, fun, and a little scary all at the same time. Whether you are a first-time homebuyer, or a seasoned veteran buying your perfect move-down (right-size) home, there is a lot to consider when choosing your mortgage company. Many home buyers have heard myths and stories from friends or relatives about dealing with the right (or wrong) mortgage company. These stories include the “you must have twenty percent down” to buy myth. And our favorite, “if you’re a deployed military or newly graduated student you’ll never get approved for a mortgage” story. The Brownstones at New Visions works with a preferred lender to overcome many of today’s home buying myths. This article will bust these myths and give you the truth about why choosing the right lender is as important as choosing your new home.
The High Down Payment Myth.
We have several first-time homebuyers at The Brownstones at New Visions. If we had a dollar for every-time we heard the myth, “you have to have twenty percent down to buy a home”, we would be rich! It’s true that the more money you can put down on a home, the less you have to pay back over the term of the loan. But you CAN buy a home with as little as 3% down with a conventional mortgage. Our preferred lender, CrossCountry Mortgage, works with many of our buyers with less than the standard twenty percent down payment. With Private Mortgage Insurance (PMI) you can put down as little as 3%. PMI insures the difference between the amount you put down and the twenty percent so that the lender can approve your loan with less risk. The biggest benefit of PMI is that it helps more first-time buyers become homeowners without having to wait to save the full down payment. The added benefits of PMI are buyers can take advantage of today’s prices and low interest rates.
Two Years Work History is Necessary.
If you are a newly graduated student or have been deployed with the military you may not have two years of work history. Many buyers believe at least two years of work experience is required to obtain a mortgage. Once again, this is a mortgage myth, as these two conditions are often overcome during the application process. As a matter of fact, in some cases you can get approved on just the strength of a job offer, or if you have just started a job. Lenders also consider your past job history, as well as your career future when reviewing your loan. It’s important to demonstrate a stable household income and reliable track record as well as income earning potential for the future. CrossCountry Mortgage works with our buyers to overcome work history obstacles when applying for a mortgage, especially when your history includes being a student or a military deployment.
Downsizing a Family Home is an Ending.
We like to refer to “down-sizing” your home, as “right-sizing”. It’s not an ending, but a new beginning. As a matter of fact, we have many buyers who have sold their family home and are thrilled for their future move to The Brownstones at New Visions. Whatever the reason, buying a new home now is a great decision! Our homebuyers are taking advantage of the historically low interest rates. Coupled with equity from a recently sold family home, this can provide an opportunity to upgrade the features in your new home to create the home of your dreams! You’ll have the buying power to get those granite countertops, hardwood floors throughout, and maybe even that Jacuzzi tub you’ve always wanted!
Buyers at The Brownstones at New Visions who work with our in-house preferred lender, CrossCountry Mortgage, enjoy many benefits that may not be offered by other lenders. With instant pre-approvals, you’ll have more buying power when it comes time to sign a contract. In addition, our buyers save on closing costs up to $1,500.00 for fees and appraisal*. CrossCountry Mortgage also offers our buyers long-term rate locks of up to one year. This protects you from rising rates. Our buyers also have a one-time courtesy rate float down if they are locked in and rates go down. No matter your personal situation when buying a new home choosing the right lender is as Important as choosing your new home.
The Brownstones at New Visions is happy to help make your new home purchase a dream come true. For more information on our new townhomes in Brick, NJ starting at $279,000, visit our website, or call 732-206-6777 today to schedule your appointment. For more information on CrossCountry Mortgage, or to use our mortgage calculator, visit our preferred lend page.
*Appraisal is paid up front by the buyer and credited back by CrossCountry Mortgage at closing.