The most common Mortgage Myths

While we’re at it let’s get rid of some of the most common mortgage myths 
around that many people still believe. Many people wrongly believe these 
myths because they were told these things by parents, peers, and others who 
have been similarly mislead. Also, many of these were true years ago, but 
simply are not true anymore due to recent changes in how mortgages are 
handled.

Myth #1:  “My local bank will get me a better mortgage because I know them and already have accounts with them.”
  
Firstly, as you already now know, this simply isn’t true.  I don’t know if 
you’ve been in your local bank lately, but they hardly know you by name, 
it’s not “Cheers” down there! 
Back in the days when Grandfather worked hard everyday, paid his bills on 
time, and knew his bank manager by name - this might have made a little 
difference.  Not anymore.  As we’ve seen above there are many reasons 
banks aren’t competitive in getting you a low rate, low monthly payment, or 
a bad credit mortgage.   
Also, there’s another reason traditional banks won’t get you a great  
mortgage: Expenses.
Traditional banks are usually in big expensive buildings, with lots of 
employees, and lots of costly equipment.  All that takes a lot of money.  
They need to pay for this by making as much money as they can on anything 
they do.  That’s why they simply want to sell your information (or your 
mortgage) to whoever will pay them the most - not whoever will get you
the best deal.  That’s yet another reason that Traditional banks are not 
competitive at all.