Summit Mortgage Corporation NMLS 3236. Information is not guaranteed and should be verified. Licensed in CA by the Department of Business Oversight. Loans will be arranged or made pursuant to the California Financing Law. Questions and concerns may be directed to support @go-summit.comNMLS Consumer Access www.nmlsconsumeraccess.org. Not all applicants will qualify. ClarkCountyLoanPro.com and LloydWhite.com is a division of Summit Mortgage Corporation. Lloyd White, Jr. is licensed to originate loans in ID/OR/WA/CA. Equal Housing Opportunity.

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Mortgage Myths



Purchasing a home and discovering the best loan option for you are important decisions that will impact your life for years to come. When looking into different financing alternatives, it's best to have a clear understanding of mortgages and the lending process. Below, you can find the truth about many mortgage myths that can hopefully help you find the lender and home best suited for you!



MORTGAGE MYTH #1: Renting a home is cheaper than buying one in the long run.

TRUTH: Both buying and renting a home come with their own sets of risks and benefits. The decision between renting and buying is entirely personal and based on unique circumstances and situations. Here are some important things to consider when deciding between renting or purchasing a home:

  • Property Values- It's important to know that the value of property can be raised from any major improvements or changes on the real estate itself. The money spent on improvements to a home you purchased can end back in your bank account if you choose to sell your home in the future. While renting a home, an increase in the property value increases your monthly rent without receiving any payout in the future.

  • Tax Breaks- One of the most significant tax incentives for owning a home is mortgage payment deductions. Property taxes allow homeowners to reduce their taxable income while monthly rent is not deductible.

  • Equity- Making mortgage payments builds equity on your home. When equity is accrued overtime, it can be used for a Home Equity Line of Credit (HELOC). These loans can be used for anything you'd like, but they are most commonly used for other real estate investments or home improvements. These improvements can increase your property value, creating a greater profit at the time of sale. On the other hand, renting does not build any equity for the renter.

  • Quality of Life- Owning your own home gives you the freedom of expression without waiting on approval from a landlord. It also builds a foundation for financial stability and health, as well as avoids the uncertainty of rising rental rates.


MORTGAGE MYTH #2: Getting a home loan is too complex and confusing.

TRUTH: With an experienced mortgage banker guiding you along the way, the mortgage process can be very simple and stress-free. Although buying a home is one of the biggest investments to make, the home loan process shouldn't be seen as intimidating. Here are the four major steps of the home loan process:

  1. Find the right mortgage banker for you. Summit Mortgage bankers guide you through the loan process and keep you informed during the whole experience. Finding a professional and knowledgeable team is the first and probably most important step when purchasing a home.

  2. Apply. The next step is to fill out a home loan application, either online or in person at one of our local branches. After the application is filled out, we can look at your financial details to match your goals and find the home loan option that's right for you.

  3. Processing. Our team at Summit Mortgage will gather all of the required information to obtain the desired loan, such as ordering appraisals or preliminary titles.

  4. Underwriting. This step occurs when one of our professional underwriters go through each submitted document in detail to verify the information. At this point, you may be required to submit more documentation only to ensure that all loan necessities are met.


MORTGAGE MYTH #3: You need perfect credit to get a mortgage.

TRUTH: Your credit score doesn't have to be perfect in order to qualify for a mortgage. When assessing your qualification, lenders look at your whole financial package, not just a perfect 850 credit score.

  • Why do credit scores matter? Having a higher credit score shows the lender that you have a history of meeting your financial obligations, such as paying bills on time. When lenders see a higher score, they have more assurance that you will pay back the money they loaned you. A general rule with credit scores is the higher your score, the lower the interest rate is on your loan. Typically, credit scores of 700 and above are ideal to get a lower interest rate and ultimately save more money.

  • To learn more about how to improve your credit score, click here!

  • To read about different credit score myths, click here!


MORTGAGE MYTH #4: Meeting Pre-Qualifications means you're guaranteed the loan amount.

TRUTH: Although pre-qualification is an important step in the home loan process, it does not guarantee you the actual loan amount. Being pre-qualified is an indication that your financial history has been reviewed and can be followed by a formal home loan application. The process helps lenders at Summit Mortgage assess what kind of mortgage and the loan amount you are qualified for.

  • Pre-Qualification Process. At Summit Mortgage, your pre-qualification is typically based on your credit history, down payment amount as well as your debt to income ratio (DTI). Getting pre-qualified with Summit Mortgage is simple. we provide free no-obligation pre-qualification consulting to help you learn what is possible for you and your family.



MORTGAGE MYTH #5: All lenders are the same.

TRUTH: All mortgage lenders are NOT the same. In the past, most homeowners looked to their banks or credit unions to obtain a mortgage. Now, there are more diverse lending options that have emerged. Each lender has their own unique loan options and programs to offer, associated with a range of fees and rates. Find out below what makes Summit Mortgage Corporation different.


  • Streamlined. Every step of the loan process is completed in-house. Our team consists of experiences underwriters located in the same office as our mortgage bankers. Having an average underwriting time of only two business days allows you to close on your new home as quickly as possible.

  • Connections. By being connected to mortgage banking resources nationwide, we can proudly offer a wide range of loan products. Our mortgage bankers stay updated with current trends and issues to be reliable resources for our clients.

  • Community. Our business is centered around making our clients' dreams come true. To see what some of my past clients have said, click here!

  • Local. We are focused on residential mortgage lending in our local communities. Because of this, we are able to adapt to local market changes while remaining competitive in the area. By being local, we know what is most important to our clients.




Have any questions about the loan process or financial requirements for a mortgage? Contact me today! I would love to sit down with you and asses your financial situation and goals for the future.


Email LloydW@go-summit.com or call (360) 901-3210 to get started today.








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