Two Big Mortgage Myths Debunked

There are a plethora of mortgage myths circulating in both the news and the web that can create confusion and apprehension amongst homeowners. Today we’d like to tackle and debunk two of the most popular mortgage myths:

Mortgage myth 1: If my loan is sold to another mortgage company, the new company can change my contract’s terms.

Truth: It is impossible for the new mortgage company to change the terms of the original contract. Once the original contact is signed, the deal is sealed and it is absolutely unalterable. The only way a new bank can change the contract is with your express permission.

Mortgage myth 2: Mortgage pre-qualification guarantees a mortgage.

Truth: While getting pre-qualified for a mortgage eliminates much of the guesswork when shopping for a home, it certainly does not guarantee a mortgage loan. There is no guarantee and are other factors to take into account. A pre-qualification is simply an estimate based on your current financial situation that informs you how much you can afford to spend on a home. Having one certainly has the advantage of making you more attractive to a seller, so it is a great idea to get one. And If your financial situation hasn’t changed since you were first pre-qualified, you should have no problem getting your loan. However, if you quit your job, or fall into financial difficulties, you may not get the loan you were pre-qualified for.

In future posts, we will be discussing more mortgage myths, which, unfortunately, can make families think it is impossible to own a home. If you ever have questions or concerns about a mortgage, please do not hesitate to fill out the form below. We’ll be glad to help.