Avoid disappointment and SAVE thousands by
taking a few minutes to acquaint yourself with
these potential home buyer mistakes
commonly made..
Home Buyer
Mistake #1: 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 home loan. 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.
Home Buyer
Mistake #2: 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.
Home Buyer
Mistake #3: 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. (Most common Home buying
Mistake)
Home Buyer Mistake #4: 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.
Home Buyer
Mistake #5: 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.
Home Buyer
Mistake #6: 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.
Home Buyer
Mistake #7: 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. (worst home buying
mistake you can make)
Home Buyer
Mistake #8: 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.
Home Buyer
Mistake #9: 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.
Home Buyer
Mistake #10: 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.
(biggest potential long term home buying
mistake)
Home Buyer
Mistake #11: 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. Remember
your the home buyer! Don't make mistakes,
ask the tough questions.
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 and
that's a mistake no one wants to make.
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
home buying mistakes. By taking these few minutes to
acquaint yourself with the "11 Mortgage Home
Buyer Mistakes Commonly Made" you can save
thousands on your mortgage.
