Buying a home is never an easy task. With so much information available, many people may not be able to tell fact from fiction. Loan experts at Greater Nevada Mortgage recently shared the top myths they hear and offered advice on where people can get the most accurate information before they begin their home buying journey.

“We’ve never seen rates rise so quickly,” said James Anderson, executive vice president of mortgages for Greater Nevada Mortgage. “Today’s world is very different from what we used to talk about in terms of housing. From limited inventory in the housing market to builders struggling to find materials and labor, the “tea leaves” are not showing the same indications as in the past. »

GNM experts Anderson and Greater Nevada Mortgage Vice President of Sales Al Crisanty stress the importance of separating fact from fiction when entering the housing market.

Myth 1: Housing costs are out of reach and with rising mortgage rates I will never be able to afford a home
“The right time for someone to buy a home is a very personal decision,” Anderson said. “There are several factors that play into the decision to buy a home. Anyone needing or wanting to enter the housing market should not make assumptions and should speak with a mortgage professional instead.

Anderson said people who may not qualify now can learn from a loan expert who will lay out a plan for how they might qualify in the future.

“If buying a home is a priority, I encourage people not to throw in the towel before talking to an expert,” Crisanty said. “While we are still hearing about bidding wars for homes in low inventory markets, homebuyers are starting to pause and reset their expectations. Before moving forward, they need to talk to one of our mortgage advisors to put pen to paper and ensure that the purchase price they are considering is still within their budget and long-term financial goals. rates may be frustrating and disappointing for some borrowers, there is no need to panic or lose hope. There are many options and resources available and the first step is to speak with a mortgage expert.”

Myth 2: Buying a home is for older generations
Millennial homebuyers consistently make up 25% of the home buying market at Greater Nevada Mortgage and that number is growing nationally, accounting for 43% nationally, according to a March NAR report.

“Savvy millennials have gotten creative when researching their dream home and the right loan products for their circumstances,” Crisanty said. “Many are cutting back on expenses, adjusting their purchase price, or considering other mortgage options, such as down payment assistance, Federal Housing Administration (FHA), or adjustable rate loans.

Myth 3: Online mortgage companies will offer the best rate
“Rates vary, and the rates people find online aren’t always accurate for their scenario and may not be the best they can get,” Crisanty said. “I would never discourage anyone from researching online, but nothing beats sitting down and talking with a mortgage professional to see what’s possible by reviewing your qualifications.”

Myth 4: You can’t buy a house without putting down 20%
There are down payment assistance programs available to qualified homebuyers in Nevada in the form of grants. These grants help homebuyers reduce the amount needed for a down payment and/or closing costs.

“We often tell people not to make assumptions,” Anderson said. “The other benefit of working with a credit professional is that they won’t leave anyone dry. Our team members sit down with anyone and, if they don’t qualify for a home right away, help them come up with a plan so they know what it takes to get there later.

Myth 5: People should be wary of home equity lines of credit (HELOC)
“A HELOC solution can be a valuable and important tool for owners as long as they know and understand the pros and cons behind it,” Anderson said. “Unlike a mortgage, people who apply for and receive a home equity line of credit only pay for what they borrow. HELOC interest rates are variable and usually based on an index, known as the prime rate, and may or may not include a margin in addition to that based on their qualifications. This means that HELOC interest rates can fluctuate throughout the loan and cannot be locked in.