buying a home avoid these mortgage mistakes
TRANSCRIPT
Buying a Home Avoid These Mortgage
Mistakes
By Homestead Road
Consulting a non-local mortgage company
It is a common mistake made by most of the homeowners that they approach a
non-local company.
You need to understand that real estate is local and a mortgage lender from
another state would not be able to ensure quality services in your state.
You are always advised to consult a local mortgage company to buy your
mortgage.
Not getting a mortgage pre-approval
There is a big difference between the mortgage pre-qualification and pre-approval,
but most of the homeowners do not know that difference.
Pre-approval for the mortgage secures the finances, which is not done through
pre-qualification.
It is because the pre-qualification is issued on the basis of the information that the
borrower provides to his lender but the pre-approval is only issued after reviewing
the credit score, tax returns, pay stubs and other financial information.
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Not shopping around
Usually, the homeowners assume all the mortgage companies to be same and
they buy a loan from the lender they consult first.
Well, that is a big mistake you would be making. The interest rates and the
lender’s fee are not same in all the mortgage companies; also, the type of service
they provide varies from one lender to another.
So, you need to shop around, look out a few mortgage lenders, compare their
services and then choose a right one.
Putting nothing or a little down
There are some mortgage companies that allow you to purchase a home without
or with just a small amount of down payment.
Though it is a good idea if you are unable to put a large amount of money down, in
the case, there are other buyers who are offering the seller a big down payment,
most probably the seller is going to accept the offer with big down payment.
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Adding too much debt
Another mistake you need to avoid is adding much debt after getting pre-approval
for the mortgage.
You are recommended not to make any other big purchase until you are done with
purchasing your
home; otherwise, it will mess up your debt-to-income ratio and would result in the
denial of your mortgage.
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So, avoid these mistakes if you want to get the
mortgage and buy a home. If you are unsure whether
you would be able to make a right move or not, it
would be better to seek professionals’ help. Contact
Homestead Road to any kind of help regarding
buying and selling a home.