Buying a home is probably the most important purchase you’ll ever make. Getting the right mortgage can be nearly as crucial as finding the right home. Follow these guidelines to make sure you avoid common but costly mortgage myths:

"Apply to your bank because you’ll get a preferred rate and less hassle."

Many banks have a separate mortgage subsidiary which may or may not give special consideration to bank customers. One thing is for certain; banks like all other lenders must build the same type of documentation in their file to meet secondary market requirements. It’s best to find a lender that you are comfortable with and that can provide prompt and accurate answers to your questions.

"Its better to buy a home at the best price than to pay more and accept the seller’s financing concession."

A seller who pays your closing costs may be helping you more than a seller who lowers the sales price. Especially consider having the seller pay your closing costs and points, as points paid at closing by sellers are tax deductible for the buyers. Also having the seller pay for closing costs can reduce your down payment. There are many more tax breaks for home buyers. Consult your tax advisor for details.

"All lenders follow the same financing guidelines."

While lenders strive to meet the same secondary market requirements, a good lender will develop a borrower’s documentation in different ways to meet those requirements. Each lender has the opportunity to be unique in how they present a borrower to an underwriter. Recognizing positive compensating factors to strengthen or offset a weakness is just one difference. A good lender must recognize that making a credit decision is an art not a science!

"A Fixed Rate Loan is Best."

A fixed-rate mortgage is best for many borrowers --- but not for all. Learn about your options and determine the special benefits of alternative programs, such as adjustable-rate and two-step mortgages.