Welcome to the Mechling Group Lender Series where we meet with local mortgage lenders to discuss a variety of topics when it comes to the home buying and selling process and financing options. On today’s episode, we are meeting with the Bomar Team of Cornerstone Home Lending to discuss Home Buying Myths: Debunked. This topic isn’t just geared towards first time home buyers. This topic is relevant for both first time home buyers as well as experienced buyers, too!
Who is the Bomar Team?
Heather Bomar is the fearless leader of the Bomar Team of Cornerstone Home Lending. They are one of the leading lenders in the OKC Metro area. The Bomar Team is currently ranked in the Top 1% in the nation for mortgage lenders! That said, we knew that they would have a ton of great information to give so that we could then pass it along to you! On today’s episode, we sat down with Tara and Jordan. These amazing woman make up a few members of the all woman team. They each play a vital role, which is exactly why the Bomar Team ranks so high on the national average- because of all of the amazing members of the team who keep their clients successfully moving forward to their home buying and selling goals! For more information on Heather and the Bomar team, Click Here!
Without further ado… Let’s dive into our myth buster addition of Q+A.
Is it true that you need 20% down to buy your first home?
That is a MYTH! You can have as little as 0% down. There are a variety of loan types that you could qualify for. Below are some loan options with their minimum down payment options.
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- VA- 0% required down
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- FHA- 3.5% required down
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- Conventional- 3% required down
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- USDA- 0% required down
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- Conventional for investment- typically 20% required down
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- HUD 184- 2.25% required down
However, keep in mind that if you do not have the minimum required down payment, there are grants and down payment assistance programs available. If you’re one who lives in a rural area and qualify for an FHA loan, there is a chance that the home itself could qualify for a USDA loan instead. If that is the case, it may be a better option for you.
Is it true that I have to pay all or most of my debt before I can buy a house?
That is also a MYTH! It is advisable to wait to pay off any debts until after you speak to your mortgage lender to determine whether or not having funds readily available or having a lower debt to income ratio is more important. Your lender will be able to determine what is going to give you the best outcome. We repeat… DO NOT PAY OFF ANYTHING UNTIL AFTER SPEAKING WITH YOUR MORTGAGE LENDER!!
Is it a myth that buyers are not allowed to receive monetary gifts in order to close?
Can you guess what the answer is? Don’t worry, we will tell you. It is in fact a…. MYTH! That’s right! You are allowed to receive a monetary gift from close friends or family. However, and this is a BIG however- any cash deposits made into your account must be backed up by a letter to prove where it came from. For example, if your parents gave you $5,000 as a gift to help purchase a home, that is absolutely allowed! The lender and underwriter will just need proof of where the funds came from. This is where the letter from your parents come into play. They simply will need to write a letter to your lender explaining the purpose of the funds. Simple as that. If you’re not in a position to receive monetary gifts from friends or family to help aid with closing costs, your real estate advisor (Mechling Group) will be able to provide you with solutions ranging from down payment assistance programs to seller concessions.
Thank you Bomar Team!
Thank you so much to Jordan, Tara and the entire Bomar Team with Cornerstone Home Lending for giving us great tips and helping us debunk some home buying myths! It was such a fun topic to discuss and we truly hope that you have learned a few things! To see the full interview on Youtube, check out the video below.
Do you have more home buying and selling questions?
Then don’t hesitate to reach out to us! We are happy to assist you in any way that we can when it comes to your home buying and selling journey.
-Madi + Shay
