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FIRST TIME HOME OWNERS - MUST KNOW FACTS!

If you are interested in buying your first home don't allow myths to stop you from trying.

Here are some myths (NOT TRUE):

• Just to qualify for loan to buy a house in Grand Rapids, you need atleast 20% down.
• The Lender works in your best interest and state law requires that they give you the best interest rate on your loan.
• One of the requirements for a loan is that you have been working at your current employer atlesat five years
• Having perfect credit is a must to buy a home in Grand Rapids.
• The interest you pay on your Mortgage in Grand Rapids is not a tax deduction

The truth is these are just myths. Now for the truth on Mortgages:

•More and more innovative mortgage packages are being created, offering the borrowers options between 3% and 5% down on a home in Grand Rapids. Some lenders offer zero down, if you have excellent credit. For first-time buyers, it's in your best interest to do some serious comparison-shopping.

•Every lender works with its own rates bases on their standards as well as the type of loan being considered in Grand Rapids, MI. Rates change literally every day so once you've made the decision to buy a home, check the rates with more than one lender and check on a daily basis, but don't have your credit pulled more than 3 times.

 

•Job stability is important but the five-year rule is merely a myth for home buying in Grand Rapids, MI. For example, if you have worked in public relations or some other industry for 10 years but have had three jobs in that time, because you've stayed within the same business, lenders will often consider this as continuous employment, especially if you've made advancements. In addition, solid credit and a larger down payment can compensate for work history in some instances.


•It's true that credit is very important when qualifying for any loan in Grand Rapids. However, if you have been out of a bankruptcy for two years and can provide a good letter of explanation to the lender in Grand Rapids, they will usually accept that. If your credit is in real bad shape, consider a credit counseling service in Grand Rapids to help you get back on track. Generally, this can be done in as little as 12 to 18 months when working with Ethan Dozeman with Platinum Group Realty.


•As you make your comparisons of the financial benefits of renting versus owning, be sure to consider tax deductions. When you buy a home, the closing costs, mortgage interest, and points are all tax deductible on a home in Grand Rapids.
 

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Just remember that there is no reason to be afraid or intimidated when it comes to buying a home. The main concern expressed by people is that they aren't sure where to begin. There is also the fear of rejection when it's very possible that the credit situation isn't as bad as they believe.

 

contact: Ethan Dozeman