3 Things People Fear About Mortgages

Based on figures from a 2012 study, nearly 30% of Americans own their homes. This means they have already paid off their mortgages. How many is that? About 21 million households across the U.S. Homeownership is one of the things most Americans dream of. However, there are still people whose fear of mortgages keep them from becoming homeowners. Here are the things most people fear about mortgages:

Not having enough for a mortgage down payment

One of the initial steps in getting a mortgage is to prepare for a down payment. Now, if you are serious about homeownership, you need to save money. Many people think that a 20% down payment is the norm, but this isn’t always the case. You need to consult a lending company to get an exact quote.

Being turned down because of poor credit ranking

Altius Mortgage Group explains that your credit score or ranking play a huge role in getting your mortgage application in Utah approved. This doesn’t mean that if you have a poor credit score, you’ll automatically be denied. What you need to know is there are many ways you can work on your credit score to improve your chances of getting an approval. Work on your credit score and prove that you have a stable income. Do these before applying for a mortgage.

Not having enough money for maintenance costs

Maintenance and home repairs are parts of being a homeowner, so make sure you have set aside a fund for such instances. This is especially true for those buying second-hand homes. It’s useless to fear these, however, because owning a home means you need to make sure that your property is well maintained. If you’re buying a new or a used home, just make sure you have it well inspected before signing anything. Keep these fears in mind and make your peace with them before applying for your first mortgage. The road to ownership may be rocky for some, but if you really want to get a piece of that American dream, face your fears and settle your nerves so you can get your dream property soon.