Selecting the perfect home can be a daunting task. But that is only a start. You still need to be a potential loan candidate with an acceptable credit score to navigate the mortgage process and ultimately secure a future worth living in. Since all these can prove to be a little slippery, most people who buy homes make mortgage mistakes that turns out to be costly. To avoid making such blunders, you need to first know what they entail.
Not shopping around with different lenders
Selecting a mortgage lender without shopping around can cost you dearly. Sometimes we tend to assume that since the interest rates and loan terms are similar across most lenders, the final fee and cost follow that pattern. Well, no. Every mortgage lender will charge differently when it comes to their fees. You need to shop around and compare the prices.
One way you can do this is by asking around. Involve your friends or even acquaintances and get to know they experience with their lenders. With this in mind you can select a mortgage lender who suits your needs.
Accepting an interest rate that’s “too good to be true”
You remember the cliché ‘if something is too good to be true, it probably is,’ the same thing applies to a mortgage process. Do not be fooled with amazing interest rates. Take your time and research the market. Find out where the interest rates lie. Don’t fall for the easier and cheaper options, they may end up costing a lot more. Consider comparing the various mortgage lenders using online platform such as Habito.com.
Waiting too long to address credit problems
Approaching your mortgage lenders without understanding where your credit score lies is a big mistake. Similarly, you wouldn’t want to approach mortgage lenders without solving your credit problems. You need every reason to get that mortgage. Don’t give them a reason not to.
Mortgage lenders will go through your report with a keen eye. They would want to know your credit worthiness and whether they can give you a loan or even at what rate. If you fail to address your credit problems, then you stand to lose big time – the loan or even your dream home.
Changing jobs before your loan closes
Another good way of derailing your mortgage is to change jobs prior to closing your loan. Quitting or changing your job in the middle of a mortgage process will end up slowing down chances of landing your dream home.
Therefore, before you call it all quits just hold on for a little while and close your loan first! It will be worth your wait.
Omitting information on your mortgage application
Failing to include all the necessary information on your application is as bad as lying when making the request for a mortgage. Remember, this constitutes a federal offense. If the lender finds out about this, they may end up making your loan due and payable.
Now you know what to avoid. Avoid these missteps and you will land your dream home.