What you don’t know can hurt you, and when it comes to getting a home loan – it can cost you. A lot. It doesn’t have to though…
WANNA HOME LOAN?
Buying a home will likely be the biggest financial decision you make, and that can feel overwhelming if you aren’t familiar with the housing market and with what the process entails. Don’t let that unfamiliarity intimidate you, because with the right information and the right guidance (ahem, us) – you can have a great home buying experience and feel confident in your decisions. On your journey of Real Estate, let us be your guide. We are here for you before, during and after your home buying/selling experience.
Toward the beginning of this journey, you need to get pre-approved with a reputable mortgage lender. Not sure where to go or who to talk to? We can help with that! We work DAILY with mortgage lenders, and we will refer you to the right lender for your unique scenario. There is much to consider when getting a home loan, but getting mo money doesn’t have to mean mo problems. Follow these tips to ensure that ten years from now you’ll still be on top when it comes to your mortgage financing.
HOME LOAN MISTAKES TO AVOID
Leaving out details from your financial profile
The best way to avoid doing this is having a great mortgage lender. Making sure you include not only your basic information, employment and living history, income, assets and debts, but also ensuring you answer every single question. Leaving details out of your profile can throw off the entire process, so having someone who is meticulous enough to make sure all your information is made available is key.
Assuming pre-qualification is equal to actual approval
Pre-qualification for a mortgage means that you’ve talked to a potential lender and provided some documentation that resulted in the lender pre-qualifying you to buy a home up-to a certain amount. Don’t be confused – this is not an actual approval. A pre-qualification is more of a financial snapshot. You will likely need to provide additional documentation and still need to go through the mortgage underwriting process to obtain loan approval.
Failing to provide every single piece of documentation needed
Your lender is going to want very detailed documentation of your financial profile, potentially including items like:
*Tax Returns & W-2s
*A home insurance quote with adequate coverage
*Business financial statements (if you’re self-employed)
*Explanations and paper trails of deposits/withdrawals over certain amounts
You will need to provide all of the requested documents, and PROVIDE THEM TIMELY. Your credit will be run, which can expose any information you didn’t disclose. Not sure about your credit score? You can start with Experian, one of the three largest consumer credit reporting agencies. You can get an idea of your current score, protect your credit identity and find useful suggestions to improve your score. No matter what, be honest upfront with your lender. It can save you time and money.
Not using a local lender
You know what rockets do? They explode. We won’t drop names here, but we recommend avoiding highly advertised, online-based, promise-making mortgage companies. Instead use LOCAL. LOCAL. LOCAL. One more time for the people in the back…contact a local lender. They are a phone call away, and probably just a quick car ride to their office. There are a number of issues that can arise during a mortgage transaction, and you will want someone that you can contact and that can contact you easily. Local lenders are responsive and client-focused.
They understand the true worth of your home, and they work very closely with all the other professionals in your home buying journey like: Realtors, appraisers, inspectors, insurance agents, title companies and closers. Local lenders are competitive with rates, so why not keep your money in your community? And most importantly, local lenders lower stress. You know the person you are talking to on the phone, and you can be comfortable with who is handling your loan for you.