Getting a home loan? Make sure you know fact from myth before you start looking around.

Getting a mortgage can be easy, or not so much, depending on what you know about the process. Myths can be easily spread because our human brains love to believe the funky and the odd. Remember how you may have believed that bulls charge the matadors because of the color red? Well, you fell for a common myth! To get organized and set for your mortgage experience, let’s debunk some common mortgage myths.

Your best credit scores are used in your loan approval.

If you’re applying for a mortgage jointly, human logic suggests that mortgage companies would use the highest score. But that’s not true. Lenders use the middle of three credit scores for each borrower, then use the lowest credit score.

Mortgage insurance is always required if you purchase with less than 20 percent down.

Mortgage insurance is generally required if you purchase a home with less than 20 percent down. There is, however, a neat trick that you can use to your advantage to avoid this insurance. The most common way to do this is by piggybacking: using a combination of a first and second mortgage. The first mortgage is capped at 80 percent and the second mortgage is for the balance of what you want to finance. Your monthly housing cost is higher, but it is possible! (Carrying your spouse on your back is optional.)

Real estate agents don’t care which lender you use.

Legally, they do not and can not care about which lender you use. But they do professionally care which lender you use because some lenders may not know the ins and outs of the specific kind of mortgage you may need. If you go with an inexperienced lender, they may miss something important which could kill the deal!

For all of your home loan needs throughout the Solana Beach, California area, contact the professionals at Ranch & Coast Mortgage Group Inc.