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.