Top 10 Mistakes When Seeking a Mortgage Loan
This Top 10 list is brought to you by Chicago Mortgage professionals affiliated with Falcon Living Real Estate Brokerage.
1. Not getting pre-approved
Without pre-approval, you do not know how much you will qualify for and you might be searching for houses that you cannot afford in the first place.
2. Not reviewing your credit report
Get a copy of your credit report and make an effort to improve your credit rating and have errors corrected before applying for a mortgage.
3. Shopping by interest rate alone
The lowest rates do not always mean the best mortgage. Check for fees, discount points and additional costs in the overall package.
4. Not shopping around
Don't go to the most convenient mortgage broker or that was recommended by a friend without checking elsewhere. There are many types of mortgages and you should find the one that suits you the best
5. Not having the right mortgage broker
Find a mortgage broker that works with several investors, so you will have more options. You should find a mortgage broker that understands what you are seeking.
6. Not knowing how much you have available to put down
Determine how much money you have available for down payment. You cannot look for a mortgage unless you know how much you have.
7. Not understanding the terminology
Check the mortgage glossaries online. Ask what you do not understand and always investigate. Read web sites and books about attaining a mortgage loan.
8. Mismanaging your credit cards
Make an effort to pay off your credit card balances. Do not open and close new credit card accounts.
9. Neglecting to consider closing costs
Talk to your lender and realtor to figure out the closing costs when buying a house such as title, escrow and loan-related fees.
10. Not assessing your monthly expenses
Mortgage calculators are readily available on websites to help you determine how much a loan will cost you on a monthly basis. Using these tools, you should determine how much you can afford to pay necessary living expenses.
1. Not getting pre-approved
Without pre-approval, you do not know how much you will qualify for and you might be searching for houses that you cannot afford in the first place.
2. Not reviewing your credit report
Get a copy of your credit report and make an effort to improve your credit rating and have errors corrected before applying for a mortgage.
3. Shopping by interest rate alone
The lowest rates do not always mean the best mortgage. Check for fees, discount points and additional costs in the overall package.
4. Not shopping around
Don't go to the most convenient mortgage broker or that was recommended by a friend without checking elsewhere. There are many types of mortgages and you should find the one that suits you the best
5. Not having the right mortgage broker
Find a mortgage broker that works with several investors, so you will have more options. You should find a mortgage broker that understands what you are seeking.
6. Not knowing how much you have available to put down
Determine how much money you have available for down payment. You cannot look for a mortgage unless you know how much you have.
7. Not understanding the terminology
Check the mortgage glossaries online. Ask what you do not understand and always investigate. Read web sites and books about attaining a mortgage loan.
8. Mismanaging your credit cards
Make an effort to pay off your credit card balances. Do not open and close new credit card accounts.
9. Neglecting to consider closing costs
Talk to your lender and realtor to figure out the closing costs when buying a house such as title, escrow and loan-related fees.
10. Not assessing your monthly expenses
Mortgage calculators are readily available on websites to help you determine how much a loan will cost you on a monthly basis. Using these tools, you should determine how much you can afford to pay necessary living expenses.
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