Debunking 5 Mortgage Myths

Navigating the world of homebuying budgets and financing? We’re here to help. We talked with the experts at MTH Mortgage®,  our preferred affiliated lender, to debunk five mortgage myths facing modern homebuyers.

MYTH #1:

Pre-qualification is the same as pre-approval.

The first mortgage myth we’ll be debunking is that pre-qualification is the same as preapproval. The terms may seem interchangeable, but when a seller hears that you’re “pre-approved,” they know you’re a serious buyer. While pre-qualification is a more casual process, pre-approval means that your income and assets have been verified, your credit has been checked, and your lender is committed. Want a leg up during negotiations? Pre-approval is the way to go.

Get Pre-Approved Now*
Myth 1

MYTH #2:

You have to put 20% down.

The next home loan myth to get debunked is the one that says you have to put 20% down. 20% down may have been the gold standard 40 years ago, but today's market is a different buying landscape. With conventional loans, buyers may be able to qualify for down payments as low as 3%. With FHA loans, many buyers are only required to have a 3.5% down payment. And with VA loans, military veterans, active service members, and the spouses of fallen soldiers may be eligible for a loan with 0% down.

See Mortgage Calculators
Myth 2

MYTH #3:

You need to have perfect credit.

Worried your credit score will hold you back? The third mortgage myth we’re debunking surrounds mortgage credit requirements. There are options for buyers who don’t have perfect credit. These days, many conventional loans only require a minimum credit score of 620 while FHA loans are available to homebuyers with scores in the mid-500s, so—no, you do not need to have perfect credit to buy a home. You can also take advantage of the MTH Mortgage Financial Solutions Program to help improve your overall credit profile.

Get Program Details
Myth 3

MYTH #4:

Principal and interest are the only factors to consider.

The next home loan myth to be debunked is that your interest rate and the loan principal are the only factors to consider when buying a home. It’s true that loan amount and interest rate are major factors when determining affordability, but many homebuyers may not be aware that property taxes and home insurance will also impact your bottom line. These costs may be rolled into your mortgage or paid separately, but either way they need to be considered when looking at the overall cost of home ownership. Thankfully, our affordability calculator takes both into account for you. Plus, our all-in monthly payments even factor in HOA dues, so there are no surprises.

See Affordability Calculator
Myth 4

MYTH #5:

Getting a mortgage has to be a headache.

The last mortgage myth we’ll debunk is that the process of getting a home loan is a huge headache. Luckily, the days of swimming in paperwork are gone. MTH Mortgage® has simplified the home loan process so you can apply online in minutes, get your pre-approval faster and move into the home of your dreams sooner. Plus, 24/7 access means you don’t have to wait to take the next step in your home search.

Get Pre-Approved Now*
Myth 5

Each Meritage Homes entity that sells homes has a business relationship with each of MTH Mortgage, LLC, Carefree Title Agency, Inc., and Meritage Homes Insurance Agency, Inc. (collectively, the “Preferred Providers”).  Specifically, Meritage Homes Corporation, which owns directly or indirectly 100% of the Meritage Homes entities that sell homes, also has a direct or indirect ownership interest in each of the Preferred Providers. As a result of this relationship, Meritage’s referral of the Preferred Providers may provide Meritage with a financial or other benefit. Please contact your Meritage Homes home selling entity or the applicable Preferred Providers for additional information.  You are NOT required to use any of the Preferred Providers as a condition of your purchase of a home from a Meritage entity. THERE FREQUENTLY ARE OTHER SERVICE PROVIDERS AVAILABLE WITH SIMILAR SERVICES. YOU ARE FREE TO SHOP AROUND TO DETERMINE THAT YOU ARE RECEIVING THE BEST SERVICES FOR YOU AND THE BEST RATE FOR THESE SERVICES. Any services provided by a preferred affiliate are the responsibility of such affiliated entity and in no event shall Meritage Homes have any responsibility, obligation, or liability with respect thereto.

*By clicking this link you will be leaving the web site of Meritage Homes and entering the site of the affiliated provider. The link is being provided for your convenience and no information contained in the linked site has been endorsed or approved by Meritage Homes and Meritage Homes is not responsible for the content of such site.

Meritage hereby notifies you that Meritage has a business relationship with MTH Mortgage, LLC, an Arizona limited liability company (“MTH Mortgage”). Specifically, Meritage or one of its affiliates is a member of and owns a sixty-five percent (65%) ownership interest in MTH Mortgage. As a result of this relationship, Meritage’s referral of MTH Mortgage may provide Meritage with a financial or other benefit. “Pre-Approval” provided by MTH Mortgage, LLC, an Arizona limited liability company (“MTH Mortgage”), and is subject to the terms and conditions imposed by MTH Mortgage. Any financing arrangement and relationship shall be solely between Buyer and Buyer’s Lender (whether or not Buyer has selected MTH Mortgage), and in no event shall Meritage Homes have any responsibility, obligation, or liability for any “Pre-Approval” provided by MTH Mortgage or any other lender, nor for any other matters or disputes that arise in connection with Buyer’s financing arrangement with Buyer’s Lender. All costs and expenses associated with Buyer’s financing arrangement shall be Buyer’s responsibility and shall be payable by Buyer in addition to any closing costs payable by Buyer pursuant to its contract with Meritage Homes for a home. 

MTH Mortgage is not a credit repair company or credit repair organization. MTH Mortgage does not guarantee improvement of your credit worthiness, credit standing, or credit capacity. Any actions you take regarding your personal finances after participating in the Financial Solutions Program is done at your discretion. MTH Mortgage does not guarantee that by participating in this service that you will become eligible for a loan. This is a free service offered to you. This is not a commitment to lend or extend credit.

+Meritage Homes Insurance Agency, Inc. is an affiliated insurance services company for subsidiaries of Meritage Homes Corporation and offers property and casualty insurance exclusively to the new home buyers of such entities in the states where it is licensed (insurance services are not available in any other states). Information and materials contained herein do not constitute an offer or solicitation for sale, nor a commitment to insure. Please contact a Meritage Homes Insurance Agency, Inc. specialist for policy offerings and details. Meritage Homes Insurance Agency, Inc. and the logos contained herein are trademarks of Meritage Homes Corporation. ©2021 Meritage Homes Corporation. All rights reserved. CA License #0N05214, AZ License #3000554346, CO License #605968, FL License #L107348, GA License #206034, NC License #1000642610, SC License #3000558440 TN License #2440977, TX License #2419659. Copyright 2021 Meritage Homes Insurance Agency. All Rights Reserved.