Taking out a mortgage loan is probably the single largest financial transaction you’ll ever make, so it’s understandably stressful for many hopeful homeowners. Unfortunately, misinformation from friends and family can leave you uncertain about the best course of action and cost you thousands of dollars in the long term. Below are some of the most common mortgage myths you might hear if you’re planning on buying a home.

3 Common Mortgage Myths Busted

1. You Need Perfect Credit

Many people assume that if their credit isn’t perfect, they shouldn’t even bother applying for a mortgage loan. Having a higher credit rating will usually result in lower interest rates and better terms, but you can still get financing with an average score. Lenders take a variety of factors into account when evaluating applications, so your credit rating is just one part of the equation.

2. Getting Pre-Qualified Guarantees You a Loan

The pre-qualification process can take a lot of stress out of the home-buying process, but remember that it isn’t a binding agreement with the lender. Before you’re approved, you’ll still need to submit additional documentation and go through the formal process, so avoid changing jobs, closing accounts, or doing anything else that could impact your rating.

3. You Have to Put 20% Down

The more you put down on a home, the less you’ll have to borrow, but you don’t necessarily need 20% of the total before you can make an offer. In fact, those who qualify for an FHA mortgage loan may be able to purchase a house with just a 3.5% down payment.

For more than 80 years, Hawaii County Employees Federal Credit Union has provided a broad array of high-quality banking services to county employees and their families, from affordable mortgage loans to convenient checking and savings options. As a member-owned financial institution, they’re committed to providing eligible members with the lowest rates possible, whether you’re applying for a credit card or buying a home. Visit their website now to learn more about their lending services, follow their Facebook for more financial advice, or call (808) 935-2969 to make an appointment with a loan officer.