Remember That Your Mortgage Broker Is There To Help

Category: Finance, Mortgages.

Avoid disappointment and SAVE thousands by reading this article. By acquainting yourself with 10 Deadly Mortgage Mistakes you can save thousands on your mortgage.

Everyday there are people just like you that have their mortgage loan turned down because of any one of these mistakes. Making Large Purchases Prior to Your Mortgage Application: On occasion people think that it is in their best interest to get major purchases out of the way prior to making a mortgage application. It is far better to wait until after purchasing your home before considering other major purchases. A key component to determining how much of a home you qualify for is outstanding debt. Choosing a Lender Just Because They Offer The Lowest Rate: Your mortgage rate is an important factor with your loan. You also need to keep in mind the APR and origination fees. Remember that it is only one of several factors.

Perhaps the most important factor is accessibility. Can you go sit down and go over the details of your financing. Is the lender located locally? If not, you should think long and hard about using that lender. Home buyers can save thousands or dollars in negotiating the home purchase by being pre- approved. Not Getting Pre- Approved for a Loan: When you become pre- approved you become a cash buyer and have more negotiating power with the seller. Any good Realtor will require the pre- approval prior to showing any homes, because they don' t want to waste your time or theirs.

Closing costs are a number of the expenses incurred when purchasing a home. Not Planning for Closing Costs: On the day of your closing you will be expected to write a check to cover closing costs. Those typically include attorneys' fees, title insurance, taxes, prepaid homeowners insurance, points and other lenders' fees. Your lender should provide you with a good faith estimate early in the loan process to estimate these costs. These closing costs can amount to between 2% and 7% of the selling price of the home. Not Providing Documents To Your Mortgage Company Timely: When your mortgage broker asks you for additional paperwork, get on it! They are trying to get you approved.

Do not complain. If mortgage brokers don' t get the documentation timely, it can result in locks expiring and higher rates. Using An Interest Only Or Payment Option Adjustable Rate Loan: If you are using these types of loans to qualify for a more expensive home. Worst of all, it could mean a delayed or blown closing date. A home that you could not normally afford, you may be going down the wrong path. You could end up with a mortgage value higher than the value of the home. There are some circumstances where these loans are useful, but care should be taken in this housing market with slower appreciation and falling prices in some markets.

Co- signing On Someone Else's Loan: You could become a great friend or even a hero to someone by doing this. Are you willing to assume that liability? Before you do, ask yourself. Are you willing to forego getting your own home to co- sign? Making Late Payments: Late payments( especially within the last year) make if very difficult to qualify you for the best terms and rates. Those could be the ramifications.

It may even keep you from qualifying at all. Hiding Things From Your Mortgage Broker: Even though it could be embarrassing to discuss previous financial difficulties. It might seem unnecessary to say, but always pay on time. Remember that your mortgage broker is there to help. Do not take on new debt without first discussing it with your mortgage broker. Your mortgage broker can only help you with those things of which he is aware. 1Over Using Credit Cards: Yes they are convenient, but if the balances are not kept low or paid off it may make getting the best rates and terms on your loan more difficult.