Let's Dispel Some Old Mortgage Myths

by Benjamin Urrutia 08/18/2019

Myths are lies that are perceived to be true. Like every other industry in the world that has myths surrounding them, the real estate industry has its tales. People have ideas in their head about the mortgage industry that are not true. If you are buying a house and all you feel is happiness, then you might be working with a myth you heard and perceive as being real; same also applies if you are buying a home and all you feel is dread. 

Below are few mortgage misconceptions that many buyers and sellers mistake for truth:

You Need A Near-Perfect Credit Score

It's essential to have a high credit score, but lack of it doesn't mean you are out of the game. Even if you have some credit blemishes but always ensured you paid bills, you probably won't have a lot to worry. If you are bothered about your credit score, other factors could offset adverse credit. Depending on your loan type, each situation is analyzed differently. 

A Down Payment of Twenty Percent Is Needed

Compulsorily providing 20% of the purchase value of the home as a down payment is also a myth. Making a down payment of 20% is helpful in the long run, especially to avoid paying monthly insurance to a private mortgage. Presently, mortgage companies and banks provide loans to individuals without requesting for a down payment close to 20%. It all depends on your financial situation.

A House Is an Excellent Investment

A home could be considered as a long-term investment if you do not intend living in it – but then, nothing in the real estate business is guaranteed. If you purchase a house to live in for several years, it's better you don't think about it as a financial tool for padding your investment or retirement plan. Buying a house is part of your net worth, but you shouldn't count on getting a return after investing much money into the home. Something most home buyers fail to understand is that the value of houses appreciates at a shallow rate and can have negative growth for long periods. 

The House Belongs to You After You Get the Keys

It's one of the myths that homebuyers assume is true. When you purchase a house via mortgage; if you do not have equity or a significant amount as down payment, your bank owns your home. For as long as it's required to finalize payment for your home - including interest, the house doesn't belong to you.

The American Dream 

In as much as owning a home is supposed to be the American dream; it can also be the American nightmare. Acquiring a home via a mortgage and not being able to meet up with payment can turn out to be your worst nightmare. Owning a home is a decision that requires thorough thinking without jumping into any decision 

Buy a house if you can afford it but be sure you have your facts right.

About the Author
Author

Benjamin Urrutia

About Benjamin:

“His leadership, business, and real estate knowledge make it possible to achieve a win, win for his clients. It is clear that his MBA helps make a property decision a better decision for his clients.”

Timothy M. Ricke –
Entrepreneur of the Year
  • “Would it serve you better if your Realtor(R) were also a real estate investor with an MBA?”
  • Why choose Benjamin?
  • * Full-time real estate professional
    * Specialized in the residential sector in metropolitan Orlando
  • * Commercial Properties (Shopping Centers, offices, land, multi-families)
    * Bilingual Spanish & culture provides quality service to his clients.
    * His background is decisive to ensure that you get the best deal ever.
    * He has over a decade of experience.

*Technology Resources – He has the technology and resources to generate demand for your property, provide buyers with the detailed information they desire, and have the ability to respond instantly to online inquiries.

Benjamin's Specialties:

  • International customers • Relocation • First Time Buyers • New Homes • Buyer;s agent • Short Sales, bank-owned properties • Investment properties – Commercial Properties.

Additional Continuing Education

  • Analysis of Income Producing Properties
  • Introductory course on Commercial Real Estate
  • Foreclosure properties for buyers and sellers
  • Certified on International Transactions, TRC.
  • Certified Relocation Specialist.
  • Five Star Institute bank-owned properties certified.
  • Short Sale and Foreclosure Resource (SFR) Certification

Professional Associations:

  • Orlando Regional Realtors Association, ORRA
  • Florida Realtors, FR
  • National Association of Realtors, NAR
  • Orlando Regional Commercial Council
  • Central Florida Commercial Association of Realtors
  • Budget and Finance Committee of the Orlando Regional Association of Realtors
  • Global Real Estate Council, GRECO. International buyers and sellers
  • National Assoc. of Hispanic Real Estate Professionals, NAHREP

Other Associations:

  • Toastmasters International, past club president
  • Financial Executives Networking Group, FENG
  • Rotary Club of Maitland, Paul Harris recipient.
  • 2016 and 2017 Orlando Regional Realtor Association Honor Society
  • Gold Key Certification on providing superior service to customers
  • Art and History Museums of Maitland - Maitland Florida - Board Member

As a practitioner and advocate of quality customer service, Benjamin is reliable, loyal, dependable and intelligent real estate expert. His academics include engineering (BS Civil Engineering – University of Illinois), MBA (Majoring in Finance – Loyola University of Chicago), and a Marketing degree (ICESI University – Cali, Colombia)