Home Mortgage – In Order To Gain Agreement In The Home Mortgage You Needs To Know Mortgage Myths
While we’re at it let’s get rid of some of the most common propertyproperty or home mortgage myths around that many people still believe. Many people wrongly believe these myths because they were told these things by parents, peers, and others who have been similarly mislead. Also, many of these were true years ago, but simply are not true anymore due to recent changes in how mortgages are handled.
1: “Getting my credit pulled to often can make my credit score look bad.”
Many people think that having your property or home credit report pulled by several different companies around the same time will make your credit rating go down. There was some truth to this years ago, but thankfully finance companies have woken up to people shopping around for a mortgage.
The old logic was if a person was applying to too many companies for credit, they were simply running around town trying to get money from anywhere – possibly even trying to work some type of scam. That used to be how it was looked at by banks and finance companies. However, lenders now realize that in this day and age (especially with the internet) it’s common to shop around for the best rate. This logic doesn’t apply to having your credit pulled by property or home mortgage companies anymore.
2: “My local bank will get me a better mortgage because I know them and already have accounts with them.”
As you already now know, this simply isn’t true. I don’t know if you’ve been in your local bank lately, but they hardly know you by name, it’s not “Cheers” down there!
Also, there’s another reason traditional banks won’t get you a great property or homehome mortgage: Expenses.
Traditional banks are usually in big expensive buildings, with lots of employees, and lots of costly equipment. All that takes a lot of money.They need to pay for this by making as much money as they can on anything they do. That’s why they simply want to sell your information (or your mortgage) to whoever will pay them the most – not whoever will get you the best deal. That’s yet another reason that Traditional banks are not competitive at all.
3: You can’t get a property or home mortgage with bad credit
Again, thankfully this isn’t true anymore! With the advent of the internet,the ease of transferring information, and so much competition – you can get a property or home mortgage with bad credit. Not only that, some companies even specialize in bad credit mortgages – with low rates! Don’t worry, we’ll show you some of these companies a bit later on.
Also, there are currently three major credit bureaus in the US. These are the companies who record people’s credit history and then sell your credit report to mortgages companies, banks, etc. Did you know that you could have one or more bad marks listed on your credit report with one or to credit bureaus, but (here‘s the important part) Not With The Others!
If you don’t immediately see the significance of that, let me explain. The bank that’s considering your application gets your credit report from credit bureau “A”, which contains some bad credit marks from your past, so the bank declines the loan – or – The same bank instead gets the application with a credit report from Credit Bureau “B”, which doesn’t contain the same negative information as company A, so the bank approves the loan!
About a year ago, I had a conversation with a guy who’s business specialized in bad credit mortgages. What he told me really opened my eyes. He basically said that the banks don’t care what credit report they get from any of the three major credit bureaus, they’re all highly reputable and trusted – after all there’s only three of them for the whole US! I can’t think of any other business with so little competition.
Anyway, because they’re all trusted equally, he would simply pull any client’s credit report through all three bureaus – and commonly find that one was missing some (even sometimes all) of the client’s bad credit history. He was obviously motivated to get the mortgage for the client, because it got him paid. And, the better the deal he got, the more chance that a client would decide to take the offer. So, he sent in the credit report that he liked best, and that was good enough for the banks – and another person with bad credit gets a mortgage.
Now, remember what we were thinking of a little while ago, what if you could have your loan shopped around to hundreds, or even thousands of mortgage companies – by people highly motivated and determined to get you the best deal?
Even if you had bad credit, the sheer volume of companies that your information is being circulated to and fought over by many different lenders would produce a few good quotes. Also, many of today’s comparison companies have NO CREDIT CHECK at all!
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