Posted by Ernesto, a resident of the Danville neighborhood, on Feb 12, 2009 at 5:03 pm
Wow, this "debunking" is worse than the "myths" themselves. Some of this thinking got us into the real estate mess we're in! I take issue with the answers...
Myth 1: You need perfect credit. That's not a myth - everyone knows you don't, but you will pay for every notch below excellent credit and you will find some loan programs are just not available to you if your credit isn't good enough.
Myth 2: Owning a home is more expensive than renting. Sorry - this is the Bay Area. Owning a home IS more expensive than renting here unless you want to go live in Antioch.
Myth 3: Lenders share your personal information. Fine - this is a myth. 1 out of the first 3 ain't bad, huh?
Myth 4: The mortgage process is too long and complicated. Sorry again, the process IS long and complicated. A good broker or loan officer can help, but what got so many people in trouble is that they did not understand the loan products they were signing.
Myth 5: Lenders love to make you wait. I can't really accept this as a myth. Who cares what a lender's motivation is... they DO in fact, make you wait (see long and complicated above). Maybe they feel really bad about it? As more and more houses on the market are REOs or short sales, this will only get worse.