Let’s bust some of the biggest mortgage myths to help you understand what mortgages are all about.
- MYTH: To get approved for a loan, you must be a customer of the bank. BUSTED – Mortgages are evaluated on a case-by-case basis. Being a customer of an existing mortgage provider does not increase or decrease your chances of getting approved. Existing customers also do not get more favourable mortgage agreements, so two myths are busted in one.
- MYTH: Transactions to gambling sites will prevent you from getting a mortgage.
BUSTED – A consistent history of betting site transactions may raise red flags for mortgage lenders, but an occasional harmless bet on the Grand National result or Eurovision results will not be considered against you. - MYTH: You can’t get a home loan if you are self-employed.
BUSTED – Self-employment does not prevent you from purchasing your own home. If you can provide the required documentation, you are as likely to get approved as anyone else. For help from a Mortgage advisor Gloucester, contact www.geniusma.com - MYTH: Renting is cheaper than buying.
BUSTED – This myth is no longer as prevalent as it once was. However, it’s worth noting that in some cases mortgage payments may be lower than rent. - MYTH: You will be penalised for your spending habits when applying for a home loan.
BUSTED – Your statements will be reviewed if you apply for a mortgage, but you won’t be penalised for an occasional splurge.
Mortgage lenders are looking for a pattern of consistent saving and the ability to recover from big spending episodes. - MYTH: Banks will not approve mortgages for single people.
BUSTED – The mortgage provider will only look at your account and loan records when you apply for a mortgage. They are looking to see if you can make the repayments.
It’s not their concern if you are single or not. This will not affect your mortgage application.
