How to Avoid Major Mortgage Mistakes When Purchasing a Home

Thinking of purchasing a home in the near future? Make sure that your transaction goes as smoothly as possible by keeping all your mortgage issues in order. Home purchases fall through all the time because of financing issues so avoid these mistakes to ensure that your purchase is a successful one.

1. Not checking your credit
Do this several months before you apply so you can make the necessary adjustments.

2. Applying for new credit alongside the mortgage
Whenever you apply for new credit, you’re seen as a greater credit risk

3. Failing to look at the total housing payment
Factor in the property taxes, insurance and association fees

4. Not seasoning your assets
The lender will want to see assets that have been in your account for at least several months. Don’t expect to roll money over from a relative’s account at the last minute.

5. Job hopping
Mortgage approval is contingent on a steady employment and income. If you’re thinking of making a career change, do so after you’ve closed your mortgage.

6. Not getting preapproved
With a preapproval, you will get a written commitment from the lender that will show home sellers that you’re serious about the purchase.

7. Forgetting to lock your rate
Mortgage quotes are just quotes until you actually tell the lender to “lock it in.” Once locked, your rate is guaranteed for a certain period of time. Don’t assume it is locked until you get it in writing.

8. Chasing exotic loan programs
Looking for the lowest rate and closing costs is great, however, if it sounds too good to be true, it most likely is. It’s best to keep it simple and go with a loan program you can get your head around, like a fixed-rate mortgage.

9. Not reading your loan documents
Take the time at closing to ensure you understand everything you’re signing, and thereby avoiding any surprises later on. Ask questions if anything is unclear.

These tips are courtesy of Home Capital Network.

Home Capital Network
Home Capital Network will go the extra mile to help you get approved. To schedule a complimentary loan consultation, contact:

Frank Approvato
Home Capital Network
(908) 692-0917