11 Deadly
Mistakes When Applying for a Mortgage
"...avoid disappointment and SAVE thousands by
taking a few minutes to acquaint yourself with
these potential mistakes.."
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Not Knowing How Much Money You Can Put Down
It’s important to know how much you can afford
to pay in down payment and closing costs when
you apply for your mortgage. The more you put
down the better rates and terms you’re likely to
get. At the same time you also need to stay
within your means and comfort level.
Working With A Mortgage Broker Who Has A Poor
Performance Record
Industry insiders know that the most common
reason that a sale fails to go through is that
the mortgage fails to go through. Ask your
mortgage broker about her/his performance
guarantee.
Not Understanding The Process
Most of us don’t shop for a mortgage very often.
As a result it isn’t something we become
familiar with. Work with a mortgage broker who
will take the time to answer your questions and
uses terms you understand.
Working With A Lender Who has Only One Investor
Not all lenders have a range of options when it
comes to investors. What if that investor
doesn’t offer the type of mortgage you need? Or
worse yet, what if you need to change loan
products after you’ve started the process?
Working with a mortgage broker who has many
investors enables you to address these issues
without starting the process over again.
Making Large Purchases Prior to Your Mortgage
Application
Many people think that it is in their best
interest to get large purchases completed prior
to applying for their mortgage. As total debt is
a key component in determining the amount of
home you qualify for it is best to wait until
after your home purchase has closed to make such
purchases.
Over Shopping Your Loan
Each time you call a lender seeking the best
possible rate and terms you have your credit
report pulled. Every time your credit report is
pulled you risk decreasing your credit score and
thus possibly decreasing the likelihood of
getting the best rate and terms. Experts
recommend that you select a mortgage broker with
a number of investors and do your shopping with
her/him.
Hiding Things From Your Mortgage Broker
Most of us have experienced times of financial
difficulty at some point. While it can be
embarrassing to discuss issues like this, your
mortgage broker is there to help you get loan
approved despite such issues. Your mortgage
broker can only help you with those things with
which s/he is aware.
Making Late Payments
Late payments, especially those within the last
year, can be very detrimental to getting the
best rate, terms and even the difference of
being approved at all. While this might seem
like unnecessary advice, ALWAYS pay on time.
Over Using Credit Cards
Credit cards are a convenient way to make
purchases, but if not paid off or balances kept
low you might find it more difficult to get the
best rates and terms on your mortgage. Keeping
your total debt as low as possible helps you get
the mortgage that best meets your specific
needs.
Cosigning On Someone Else’s Loan
While it can be a great service to a friend or
loved one, signing to guarantee someone else’s
loan is often a big head ache for the cosigner.
Before cosigning you decide if you’re willing
and/or able to assume the liability.
Not Getting All The Facts
It is important to learn the total cost of your
mortgage loan, both at closing and for the life
of the loan. While mortgages can look a lot
alike there can be subtle differences which can
save or cost you thousands of dollars. Get all
the facts and know what to expect.
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Mortgage regulations have changed significantly
over the last few years, making your options
wider than ever. Subtle changes in the way you
approach mortgage shopping, and even small
differences in the way you structure your
mortgage, can cost or save you literally
thousands of dollars and years of expense.
Get the Right Information - Whether you are
about to buy your first home, or are planning to
make a move to your next home, it is critical
that you be informed about the factors involved.
Everyday people have their mortgage loan turned
down because of one or more of these mistakes.
By taking these few minutes to acquaint yourself
with the "11 Deadly Mistakes When Applying For A
Mortgage" you can save thousands on your
mortgage.
This article is the property of
www.1st-in-homeloans.com, which has been
offering home mortgage services since 2002. To
find out more visit
www.1st-in-homeloans.com
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