Mortgage Mistakes to Avoid At All CostsPosted on May 27, 2020
For the average person, buying a home is the most expensive purchase they’ll ever make. With that typically comes a mortgage payment, which will most likely be the biggest debt someone will ever carry. As intimidating as this may sound, it need not be as long as you’re educated on the common mistakes to avoid during the process. If you’re in the market for a new home soon, and want to learn more about how to rock your mortgage loans with zero mistakes, we’ve got you covered. Listed below are our top 3 mortgage mistakes to avoid!
Not Fixing and Reviewing Your Credit Reports
Making sure your credit reports are in good shape before purchasing your dream Colorado home is crucial. Review your reports and try to pay off any lingering bills as soon as you can before you go to qualify for a mortgage. If there are any errors, it’s important to fix them, as this could lead to a higher mortgage rate or even rejection of the loan. Along with this, your credit score should be in good standing, be sure to use good resources to review your score and know the ways you can improve it before jumping into qualifying for a mortgage! You can read some of our tips to improving your credit score, here!
Not Shopping Around for the Best Rate
We all tend to look for the best deals when we’re shopping. However, most people fail to look for the best mortgage rate. Borrowers tend to only consider one lender or broker and don’t shop around before applying, which we believe is the wrong way to go about the process. Doing a bit of extra research and receiving quotes from multiple lenders and checking around with local banks and credit unions could save you money. With that said, keep in mind that each time a lender pulls a credit score to give you a quote, it will ding your credit! Be sure to minimize this damage by getting quotes within a 14 day period so it doesn’t end up looking like you’re applying for multiple loans each time.
Our own residential lender, Tim Moore has a background in corporate finance and holds dual Master’s degrees from the University of Colorado in Business Administration and Management. Tim was a Senior Loan Officer for the past ten years and then joined Team Lassen in 2004. Tim gets the most satisfaction out of working with each client to help them obtain the best financing solutions for their specific needs. Get in touch with him today!
Making Yourself “House Poor”
Being “house poor” essentially means you’re spending all of your monthly income on housing-related costs with little money for anything else leftover. When figuring out how much you can truly afford, taking expenses other than bills into consideration is crucial. Try to factor in your other monthly expenses, i.e cosmetic upgrades such as furniture and decor for your home, retirement or travel savings, emergency expenses, etc. Many first time home buyers are surprised by the expenses associated with purchasing a home. Being prepared with a budget of all your outside expenses as well as the expenses of the home will be crucial to staying on track.
Of course, our team can help you with the process of not only finding a new home, but managing how to prepare for your mortgage and payment process! Give us a call today to learn more about not only finding your dream Colorado home, but managing your process.