20
Jun
By Fred Gruber
Homebuyer Tips

The Top 5 Mortgage Myths Debunked for National Homeownership Month

June is National Homeownership Month, a time to shine a spotlight on the opportunities and advantages of owning a home. It is also the perfect moment to clear up some of the most common myths that hold people back from pursuing a mortgage. Many potential buyers delay their homeownership dreams because of outdated beliefs or misinformation. Let’s break down the top five myths and explain what is really true in today’s mortgage world.

Myth 1: You need perfect credit to qualify for a mortgage
This is one of the biggest misconceptions. While credit scores do impact your loan options and interest rate, you do not need a perfect score to qualify. In fact, many loan programs are designed to help those with moderate or even fair credit. FHA loans, for example, are available to borrowers with credit scores as low as 580 in many cases. The key is to work with a mortgage professional who can help you understand your credit profile and identify the right loan product for your situation.

Myth 2: You have to put 20 percent down
The 20 percent rule is outdated. While putting down 20 percent can help you avoid private mortgage insurance (PMI), it is not a requirement for most loans. FHA loans can require as little as 3.5 percent down, and some conventional loans offer 3 percent down payment options for qualified buyers. VA and USDA loans even allow zero down for eligible applicants. There are also down payment assistance programs that help bridge the gap for buyers who are short on upfront cash.

Myth 3: Getting pre-approved is the same as being approved
Pre-approval is a great first step, but it is not the same as final loan approval. A pre-approval means a lender has reviewed your finances and issued a preliminary decision. However, final approval involves a deeper dive during underwriting, where your income, assets, employment, and credit are all verified. Understanding the difference helps you avoid surprises during the homebuying process and keeps you better prepared.

Myth 4: It is cheaper to rent than to buy
While renting can seem more flexible in the short term, homeownership builds equity over time and offers long-term financial benefits. Mortgage payments can be more predictable than rising rents, especially with a fixed-rate loan. Plus, homeowners enjoy tax advantages and the chance to build wealth through property appreciation. Renting may feel more affordable now, but buying is often the smarter move for your future.

Myth 5: You cannot get a mortgage if you have student loan debt
Student loans do not automatically disqualify you from getting a mortgage. Lenders look at your overall debt-to-income ratio to determine affordability. If your income supports your current debts along with a projected mortgage payment, you may still qualify. In many cases, student loans are factored into your approval using adjusted payment methods that reflect your actual monthly obligations.

Why debunking these myths matters during National Homeownership Month
National Homeownership Month is about celebrating the benefits of owning a home and helping more people achieve that goal. Misinformation holds too many qualified buyers back. By separating fact from fiction, we empower more individuals and families to move forward with confidence. Understanding your options is the first step toward getting the keys to your future home.

If you have been on the fence about buying because of something you heard, now is the time to talk to a mortgage professional and learn what is truly possible. The road to homeownership may be closer than you think.

19
Jun
By Fred Gruber
Homeowner Tips

How to Build Credit For a Mortgage Starting This National Homeownership Month

June is National Homeownership Month, a time to celebrate the dream of owning a home and offer guidance to those preparing to take that important step. One of the most impactful things you can do right now is to begin building or improving your credit. If you plan to purchase a home in the next 6 to 12 months, the work you do today could make a major difference in the loan terms you receive later.

Check your credit report first. Before anything else, it is important to know where you stand. You can access your credit reports for free at AnnualCreditReport.com. Review them carefully for any errors or outdated information. Disputing mistakes, like incorrect late payment or a paid-off account still listed as open, can quickly improve your score. Knowing what is on your report also gives you a starting point to track your progress.

Prioritize on-time payments. Your payment history makes up the largest portion of your credit score. Even a single missed payment can significantly lower your score and stay on your report for years. Set reminders or use auto-pay features to ensure you never miss a due date. If you are behind on any bills, getting caught up and staying current will help your credit rebound over time.

Manage your credit utilization. This refers to how much of your available credit you are using at any given time. Keeping your usage under 30 percent of your total credit limit shows lenders that you are using credit responsibly. If you are carrying balances on your credit cards, paying them down can make a quick and measurable impact on your score.

Consider building new credit responsibly. If your credit history is thin, opening a secured credit card or becoming an authorized user on a trusted family member’s account can help. Just be sure any new accounts are used wisely. Keep balances low and make all payments on time. Avoid opening too many new lines of credit at once, as this can temporarily reduce your score due to multiple hard inquiries.

Avoid making big financial changes too close to applying for a mortgage. Taking on a large new loan or suddenly closing older credit cards can shift your credit profile in ways that could be harmful. Lenders like to see consistency. Keeping your financial behavior steady and predictable in the months before applying for a mortgage is a smart move.

Use National Homeownership Month as your motivation to take action. This month is about more than just recognizing current homeowners. It is about helping future buyers like you start the journey with confidence. Whether you are six months or a year away from applying for a mortgage, building credit now puts you in a stronger position.

If you have questions or want help reviewing your credit situation, we are here to support you. Let’s turn this month into the beginning of your path to homeownership.

18
Jun
By Fred Gruber
Home Buyer Tips

Celebrating National Homeownership Month and How First-Time Buyer Programs Make It Possible

June is National Homeownership Month, a time to celebrate the dream of owning a home and spotlight the many programs designed to help first-time buyers turn that dream into reality. For many Americans, the biggest challenge to buying a home is coming up with the funds for a down payment or qualifying for a loan. Fortunately, there are a wide variety of mortgage options and assistance programs available to make homeownership more achievable.

FHA Loan 
One of the most widely used mortgage programs for first-time buyers is the FHA loan, backed by the Federal Housing Administration. FHA loans typically require lower credit scores and offer down payment requirements as low as 3.5 percent. This makes them an excellent choice for buyers who may not have perfect credit or a large amount of savings.

VA Loan 
Another valuable option is the VA loan, available to eligible veterans, active-duty service members, and certain members of the National Guard and Reserves. VA loans do not require a down payment or private mortgage insurance, which can save borrowers thousands of dollars upfront and over time. These loans are a strong way to thank those who have served our country while helping them build stability through homeownership.

USDA Loan
USDA loans also support first-time buyers by offering zero-down payment options in qualifying rural and suburban areas. Designed to promote homeownership in less densely populated communities, these loans are income-based and come with competitive interest rates.

Additional Loan Options
Beyond these federal programs, many state and local governments offer down payment and closing cost assistance to help first-time buyers get into a home. These programs may include grants, deferred-payment loans, or forgivable loans that reduce the financial burden of homebuying. Some also offer matching savings programs to help future homeowners reach their goals more quickly.

National Homeownership Month is the perfect time to explore these opportunities. Real estate markets often pick up in the spring and summer, and many buyers aim to move before the new school year begins in the fall. Starting your homeownership journey in June gives you time to get pre-approved, explore your options, and find the right home with confidence.

If you are considering buying your first home, contact us to help you understand the programs available in your area. The right guidance can open doors you did not know existed and put you on the path to becoming a homeowner sooner than you think.

Homeownership builds equity, stability, and a sense of pride. National Homeownership Month is a celebration of those values and a reminder that with the right support, it is possible for more families to achieve this important milestone.