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Myths About Homeownership
Myth: It’s a bad time to buy a house. Fact: In fact with mortgage rates at historical lows and tax credit offered through the Housing and Economical Recovery Acts of 2008 and 2009, buying a home for first-time homebuyers has never been easier or more affordable. In addition, house prices have been falling and the number of homes available to first-time homebuyers has been increasing making this a perfect time for first-time homebuyers to purchase their first home.
Myth: You can't buy a home in the U.S. if you're not a citizen. Fact: If you're a permanent or non-permanent resident alien, you can purchase a home in the U.S. In order to qualify for a loan you typically need to be a permanent resident alien with a valid "Green Card" and Social Security number. If you are a temporary resident alien with a valid work permit and Social Security number and have been in the United States continuously for the last 2 years, with steady employment and good credit history you may also qualify for a loan.
Myth: You can’t qualify for a mortgage if you don't have a bank account or credit cards. Fact: A bank account and a credit card is the easiest and fastest way to establish credit, however, lenders can approve you as a first-time homebuyer even if you do not have either of these. You will need to have records and documents showing that you have a good history of making payments for bills such as rent, utilities, car payments, etc. It is also a good idea to keep a list references – people or companies that you have made payments to.
Myth: Lenders share your personal information with other companies. Fact: Lenders are restricted by law with how they handle and use your information. There are very strict regulations that prevent them from sharing your information with anyone, if you request they do not disclose any of your personal information. If you have any questions about how your information will be used, don’t be afraid to ask – it is your right to know!
Myth: If you're late on your monthly mortgage payments, you'll lose your house. Fact: If you fall on a financial hardship and have trouble making your mortgage payments, your lender will likely work with you to temporarily set up a payment program you can afford until you get back on your feet. The key is to contact your lender early and to have a true financial hardship such as loss of a job, death of a spouse, or medical issues. Be honest with your lender and work with them to find a solution as soon as you can. Foreclosure is only a very last resort for lenders. They would much rather work out another option and keep you in the home. If you’re your financial situation changes and you are afraid you are going to fall behind on your mortgage payments – CONTACT YOUR LENDER IMMEDIATELY.
Myth: You can't buy a home in the U.S. if you're not a citizen. Fact: If you're a permanent or non-permanent resident alien, you can purchase a home in the U.S. In order to qualify for a loan you typically need to be a permanent resident alien with a valid "Green Card" and Social Security number. If you are a temporary resident alien with a valid work permit and Social Security number and have been in the United States continuously for the last 2 years, with steady employment and good credit history you may also qualify for a loan.
Myth: You can’t qualify for a mortgage if you don't have a bank account or credit cards. Fact: A bank account and a credit card is the easiest and fastest way to establish credit, however, lenders can approve you as a first-time homebuyer even if you do not have either of these. You will need to have records and documents showing that you have a good history of making payments for bills such as rent, utilities, car payments, etc. It is also a good idea to keep a list references – people or companies that you have made payments to.
Myth: Lenders share your personal information with other companies. Fact: Lenders are restricted by law with how they handle and use your information. There are very strict regulations that prevent them from sharing your information with anyone, if you request they do not disclose any of your personal information. If you have any questions about how your information will be used, don’t be afraid to ask – it is your right to know!
Myth: If you're late on your monthly mortgage payments, you'll lose your house. Fact: If you fall on a financial hardship and have trouble making your mortgage payments, your lender will likely work with you to temporarily set up a payment program you can afford until you get back on your feet. The key is to contact your lender early and to have a true financial hardship such as loss of a job, death of a spouse, or medical issues. Be honest with your lender and work with them to find a solution as soon as you can. Foreclosure is only a very last resort for lenders. They would much rather work out another option and keep you in the home. If you’re your financial situation changes and you are afraid you are going to fall behind on your mortgage payments – CONTACT YOUR LENDER IMMEDIATELY.
If you need any more information on this topic or buying or selling a home, contact us. We are here to help.
Pamela Edwards, realtor Ebby Halliday Realtors, Inc (972)715-0152 email me
Pamela Edwards, realtor Ebby Halliday Realtors, Inc (972)715-0152 email me