TEN MORTGAGE MISTAKES TO AVOID!
Updated: Jan 15
TEN MORTGAGE MISTAKES TO AVOID WHEN BUYING A HOME
If you are interested in purchasing a home, do your best to avoid these potential pitfalls:
1. Check your credit first. Always check your credit before you start looking for a home. You may have issues with your credit that you didn`t expect, such as late payments on accounts you forgot about.
2. Do not apply for any new credit. Taking on a new debt is one of the biggest mortgage mistakes.
3. Do not underestimate your housing payments. A housing payment is not just a mortgage payment, but also house insurance, property taxes, utilities costs.
4. Do not make any large deposits. Before you start the mortgage loan process, you should already have all of the funds you need to purchase your home. Any large deposits that you make will need to be tracked. Tracking by the mortgage company ensures that you do not receive money from other sources, such as private family loans or even gifts.
5. Stay in your current job. Even if you are moving to a position that has a higher rate of pay, changing positions in the middle of receiving a mortgage loan is almost never a good idea.
6. Always get a pre-approval. Please remember and understand that Pre-qualification letters are not the same at a Pre-approval.
7. Always shop around. You should always shop around to find the most favorable terms and rates possible with your mortgage loan.
8. Keep your mortgage simple. There are many exotic loan packages available, but many of them come with complications or catches.
9. Always read your documents. Mistakes can happen. While your real estate agent will do their best to protect you during the actual purchase of the property, what occurs with your mortgage loan will usually be entire between you and your lender. When you go to your bank to sign your documents, you should carefully read each page, and you shouldn’t be afraid to ask questions.
10. Always lock in your mortgage rate. Mortgage rates fluctuate on a daily level. If you don’t lock in your mortgage rate, it’s possible that you could be in for a surprise once you finalize your loan. If your mortgage loan takes an unusually long time to close, this difference could be relatively significant. This is particularly the case during periods when mortgage rates are going up quickly.