Real Estate Myths Debunked, Episode Two: Starring Kevin Methvin and Host Emily Cross

Real Estate


At Prosper Real Estate, we are committed to supporting the community makes intelligent, educated decisions when it comes to real estate. Our new segment, Real Estate Myths Debunked, is a great tool to offer insight into a world that is unfortunately sought with untruths, fake “news,” and myths. Director of Business Development Kevin Methvin and Host Emily Cross returns to the reality of “Myth Busting” with Episode Two of Real Estate Myths, Debunked.

Myth Number 1: It’s OK To Make A Major Purchase During Escrow 

The process to purchase a home can be a long one. Potential homebuyers who are using a finance tool to purchase their home often have to save, pay down debt and work hard to ensure their DTI (or Debt-To-Income) ratio to a place that makes them attractive to lenders. For many people, this means putting a long HALT on all spending. When buyers finally reach the final stages of the purchase process, it becomes incredibly tempting to make another large purchase. A new car, furniture, or appliances for their new home, or even a vacation to celebrate the pending closing of the loan. 

Now is NOT the time to drive home in a brand new vehicle!

However, this is a HARD NO! Why? When you finally reach escrow, any purchase you make can impact your credit score. For many families, even a tiny increase in debt may throw off the whole loan and bring the purchase of your dream home come to a devastating stop. 

Prosper Tip? NO SPENDING UNTIL AFTER THE CLOSE OF YOUR HOME. 

Myth Number 2: All Credit Reports Are The Same 

Another essential myth we think is vital to BUST is that all credit reports are the same. At Prosper, we constantly refer new potential homebuyers to one of our Preferred Lending Partners when they display interest in purchasing a home. Even for buyers who watch their credit scores closely, the credit report that most lenders pull is different from the credit report you may find on websites such as freecreditreport.com. Remember, not all credit companies pull the same credit data. This means that not all credit information is reported to all credit agencies. While this may seem confusing, it is important to remember different scores and scoring models. 

Not All Credit Reports Are The Same
Not All Credit Reports Are The Same

The light at the end of the tunnel is simple. Reach out to a reputable, local lender who can pull your actual FICO score, which about 90% of lenders in the U.S. use as a baseline for determining your creditworthiness for purchasing or refinancing a home. Your lender will also work with you to define specific steps you may take to improve your credit score and increase the probability of being approved for a real estate loan, or simply improve the loan packaging details. 

Myth Number 3: All Banks and Lenders Offer The Same Programs 

Another myth that we see spread throughout the industry, often for unscrupulous reasons, is the idea that all lenders and banks offer the same types of finance programs for homebuyers. This may have been true many, many years ago – this myth must be DEBUNKED!

The simple truth is that different lending institutions offer a myriad of lending programs for the diverse population of people they work with. There are so many other variables that go into home-buying lenders, and banks have taken the time to create programs that answer the needs of different types of buyers. Although some banks may specialize in one kind of lending package over another, the plain truth is that there are many programs for which you may qualify.

Different Lending Institutions Have Different Lending Programs For Different Borrowers and Borrower Needs

We recommend reaching out to us or your own preferred local lending company to learn what programs exist and how you can best qualify for the lending package that makes the most sense to you. We know that there is no such thing as a “typical” buyer – and so do banks! We believe there is a lending program for every buyer. 

Work with the Team At Prosper Real Estate Give Us A Call: We Are Here to Help You Prosper In California 

At Prosper Real Estate, we believe that education is one of the most powerful tools you can have in your belt when it comes to real estate. Instead of getting caught up in what you think you know because you heard it through the grapevine, give us a call.  

The Prosper Team
The Prosper Real Estate Team

We have been leaders in the local real estate market for nearly 20 years. If you count cumulatively, our team brings decades of insight, knowledge, and experience to our clients.

Stay with us as we continue to highlight myths and showcase the reality of real estate. And, like always, we invite you to call, email, or stop by our office to learn how we can help YOU, Prosper in California. 

Call or text at 925-819-102, stop by our office at 141 Sand Creek Rd, Suite D, in Brentwood, CA, or email us at Mark@ProsperCalifornia.com. Stay up to date with us by following us on Facebook, Instagram, and YouTube. Local review sites, such as Google Business and Yelp, are also great ways to learn more about the work we do, the communities we serve, and our incredible clients.


And remember, We Are Here to Help You Prosper In California!

Prosper Real EstateProsper Real Estate


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