Whether this is your first time applying for a home loan or you’ve done this before it can be very easy to make a mistake. Here are some of the top mistakes that novice and experienced homebuyers or refinance borrowers have made in the past.
#1. Not checking your credit before showing it to a lender.
Think of it this way: would you go to a job interview without reviewing your own resume or even making sure you look decent in the mirror? Probably not. It’s the same way with your credit history. You should not turn your credit history over to a lender before looking at it yourself. Also, make sure you pull your credit history about six months prior to the home loan process so that you can correct any mistakes, errors, or get things paid off so that the report looks as best as I can.
#2. Not getting pre-approved.
This is basically like going to the mall without bringing your wallet. You have to know how much home you can afford before you can even think about shopping for a property. Yes, shopping for homes is a lot more fun but it also makes more sense once you know how much you can actually afford. There’s nothing more frustrating or discouraging than finding a home you love only to discover it is out of your price range.
#3. Not shopping for a loan.
Like I said before, it’s a lot more fun to shop for a house than a mortgage but not doing so could actually cost you thousands of dollars. Many people don’t even shop at all for a home loan and pay more attention to the rate instead of the fees for the loan itself. You might be getting a good grade but could be paying thousands extra in fees and lender costs. Better yet, let your lender know you are shopping around so that they can give you the best possible rate.
I want you to be a well-informed mortgage or loan borrower and not making these simple mistakes can put you on the road to success. If you’d like to find out how much home you can afford, give us a call! Schedule your consultation over the phone or in person. We are Xpress Lending and we have your goals at heart!