Huge mortgage mistakes. Choose the right lender

October 27, 2015/Harriet Martin/Comments Off on Huge mortgage mistakes. Choose the right lender

It is imperative that you navigate the mortgage process and plan well for your mortgage. Choosing the WRONG mortgage lender can cost you money and time and you may still not qualify – thus the loss of your dream home.
Since all that can get a little tricky, many home buyers made mortgage mistakes that cost them dearly.

In order to avoid some of the biggest missteps, you should first know what they are.

  1. Picking Any Old Mortgage
    You don’t want to be saddled for even a short period of time with the wrong mortgage.

Loan shop with agent referred lenders and use the realtor.com® mortgage calculator to fine-tune your estimates. Realtors are in the business full time and know who to trust and who NOT.

  1. Confusing Pre-Approval or Pre-Qualification With Commitment
    When you’re pre-qualified, the lender is simply giving you an estimate about how much you can borrow based on information you’ve provided. Don’t get stuck here. This is a quick YES to your phone conversation or walk in information.

When you’re pre-approved, the lender has verified everything you’ve provided and is offering to lend you up to a given amount at current interest rates—under certain conditions. YOU KNOW WHERE YOU STAND – approved or wait another year till your credit or salary improves.

A pre-approval when shopping for a home is still not a guarantee: the lender’s final clearance and a loan commitment are subject to an appraisal satisfactory to the lender, a good title, a last-minute credit check and other verifications.

  1. Having Too Much Debt
    Even if you pay your bills on time, lenders tend to focus just as much on how much credit you have available to you—that is, your debt-to-income ratio—as they do on timeliness.
    Too much debt is a sure way to be turned down for a mortgage. Postpone any big-ticket purchases until after you buy your house.
  2. Forgetting About Your Credit
    Before you apply for a loan, you should know your credit score and credit report inside and out.
    Thoroughly check your credit report for any possible mistakes. You can order a free credit report from each of the big three credit report agencies—Equifax, TransUnion and Experian—once a year.
    If you see a mistake, dispute it. If your credit is bad, that’s okay: just work on repairing it before you apply for a mortgage.
  3. Lying on Your Loan Application
    Exaggerating your income on a mortgage application or putting down other untruths can be a federal offense.
    If a lender finds out, they can make your loan due and payable immediately. And while bad loan officers may stretch the truth to get a client approved, it’s the BORROWERS who end up paying the price.
  4. Hiding From Payments
    The worst thing you can do is ignore phone calls and letters from your lender when you are behind on your payments.
    Lenders have many options at their disposal to help keep borrowers from losing their homes to foreclosure, but they can’t do anything for you unless they can talk to you about your difficulties.
  5. Making Big Life Changes – such as divorce, co-signing a loan, another job move or huge events can cause a non-approval.

Lenders like stability.
It’s a good idea to have kept your job for at least a year or two before applying for a mortgage, and it’s even more important to keep your job throughout the mortgage process.
If you’re looking to switch jobs, wait until after you’ve closed the deal.

**** Learn early – Look at www.HarrietMartinRealEstateTeam.com for our advertisers who are lenders – we trust them implicitly to give you the REALISTIC answers.
The Harriet Martin Team
Fortune International Realty
Call us FIRST! 305-528-5558

Harriet Martin