South Holland, Illinois, is an interesting place to live, to say the least. The neighborhood is “dry,” which means that alcohol is not permitted. Also, all businesses not related to travel are closed on Sundays, which you’ll notice right away if you drive in the business district on a Sunday afternoon. Additionally, the development of condominiums or apartment buildings is prohibiting due to zoning laws. This is, as you may have guessed, a community very interested in preserving a strong religious heritage. If that kind of lifestyle appeals to you, you should consider buying a home in this neighborhood.
To purchase a home in South Holland, Illinois, you will need to work with a mortgage lender to borrow a large sum of money. Mortgages are a huge responsibility, and to make the very best decisions regarding your finances, it is important to understand how the mortgage process works from start to finish. There are a number of myths surrounding mortgages, and here are a few, along with the truth surrounding them.
Myth #1: Lenders don’t care about you or your needs.
People own businesses because they want to make money. However, just because someone wants to make money doesn’t mean that they don’t provide honest customer service. All lenders seem to have the reputation that they only care about your dollars, and not about you, but this is untrue. Once you begin looking for a lender, you may be surprised at just how many people step in to help you get the financing you need to make your home possible.
Myth #2: If you fall onto rough times financially, you will lose your home.
This can be true if you aren’t smart about your mortgage. Paying on time and in full is crucial, but lenders understand that problems happen to everyone. Most will work with you to refinance or defer payments for a month. When you refinance your mortgage for a lower monthly payment, you’ll end up paying more interest in the end, but that could be worth the fact that your home isn’t foreclosed and sold at auction.
Myth #3: All lenders are the same.
This couldn’t be more false. Shopping around for the best deal is crucial. Remember, it’s not just the interest rate that should concern you and your family: you also have to think about closing costs. Closing costs will be found every time you take out a mortgage, refinance, or use home equity loans, so be careful to find the lender willing to provide the best combination of interest rate and closing costs.
Myth #4: You don’t own your home until the last payment is made.
This is where things get fuzzy. You do own your home, but it is the collateral for a loan that was used to purchase the home. That means that the bank has a claim to your home. However, it doesn’t mean that the bank is in any way responsible for your home unless they repossess it. More importantly, your home will gain equity as you make payments. Equity is the total market value minus the amount you owe on the loan. You can liquidate that value with home equity loans, which can be used to make other large purchases, sometimes at a much cheaper interest rate than if you’d go to a banker in South Holland, Illinois, for a personal loan.
It is important to remember that not all facts you hear about mortgages, refinance options, and home equity loans are true. The best way to bust the myths surrounding the real estate and finance industry is to speak with a professional. Fill out the quick form below and we’ll contact you to answer all of your questions about mortgages so that you can get started shopping for your dream home.
