People rely on mortgages to acquire the cash that they need to buy a new home. Despite the fact that it is not a straightforward process, it is still very manageable, so as long as you are willing to invest the time and effort to submit your application. That said, many loan applicants tend to make mistakes along the way due to some myths that decrease their chances of getting their loans approved.

In such a case, it is only fitting to know about these mortgage myths so that you may not be confused with the process. Below are just a few examples.

1. All Mortgages Are Good for People with Bad Credit

Although some companies do indeed offer their services to applicants with bad credit, it is not exactly very reliable. There are instances wherein you might be denied your loan.

2. Lending Companies Have Been Known to Have a Negative Perception of Self-Employed People

Although they might indeed have lower incomes, they are also more capable of calculating their monthly earnings and expenses.

3. There Is No Way to Get a Mortgage by Yourself

Many people believe that they will not get the mortgage that they need, especially if they are self-employed. This could not be farther from the truth. As long as you are a US citizen and you are willing to lay down all the basic requirements, you could still get your hands on a mortgage.

4. There Is No Way to Get a Mortgage Without a High Income

A percentage of your mortgage payment usually goes to your monthly income. This is the reason why mortgage providers use your income figures as an indicator to determine whether or not you would be able to pay off your loan.

5. It Is Bad to Have a Low Debt-to-Income Ratio

Although it is a good thing to have a low DTI, this does not mean that you are free to go and get a mortgage with a 0 percent DTI. Sometimes, the DTI can be too low, so it is better to go ahead and get one with a higher DTI. You could use the extra cash to pay off any debts that you might have, thus making your DTI even lower.

6. You Have to Have Good Credit Scores to Get a Mortgage Loan

Most mortgage companies do indeed carry out a credit check on their applicants, but this does not mean that they will not give you a loan equal to your credit scores. They will still evaluate your application based on your income and your assets, regardless of your credit scores.

7. There Are No Loans for People Whose Assets are Small

It is true that some mortgage providers would only approve applicants who have a steady source of income, but that does not mean that you cannot apply for a mortgage if you do not have a steady source. Even mortgage companies would require you to have a steady source of income, but this does not mean that you cannot get the loan.

Conclusion

It is good to be informed about the various myths surrounding mortgages. This way, you would be able to avoid making a mistake and losing your chance at getting a mortgage.

Take note of our examples above and feel free to share this valuable information so that others may not fall into the same pitfall of believing in them.

If you are looking for an opportunity to finance your home in Ontario, look no further than what we have to offer here at Mills Financial Group. We have a wide range of options that are sure to give you more opportunities to pay off your home in no time. Call us today and let us discuss about the loan that you are trying to apply for.