Top Mortgage MistakesThe San Antonio movers , together with MSN.com is here help you figure out the typical mistakes people make surrounding mortgages. Applying for a mortgage is serious business. You’ll be taking on a significant amount of debt, that’s why it’s wise to fully understand the process and do great research. Take a look at some of the mistakes people typically do. People don’t take the time to fix their credit before actually applying for a loan. Before you think about purchasing a house, you should get copies of your credit report and your FICO credit score. That score is a three-digit number that’s used in 75% of mortgage-lending decisions. Do this prep work at least six months before so that you can challenge any errors on your report so they can be removed and you can be well on your way to applying for that mortgage. You’ll also have the chance to see what’s hurting your score including credit card debt and overdue bills and maybe repair it.
Not looking for a first-time homebuyer program is another mistake people do. These typically state-sponsored programs offer better interest rates and terms. Some are even custom-made for people with damaged credit or people with a small down payment. Just call the housing agencies in your state to find out about homebuyers’ programs in your area.
All My Sons of San Antonio also found out that many people confuse being ‘pre-qualified’ with being ‘pre-approved’. Being pre-qualified is a casual process by which your lender tells you how much money you can borrow by using variables like the debt you have, the income you have as well as the amount for your down payment. Being pre-approved is much more rigorous process. You’ll have to show your tax returns, pay stubs and other information. The lender verifies the info and your credit. If everything checks out, you’ll have a written statement from the lender that they are willing to loan you the money and you’ll have mortgage.
Borrowing too much money is the next one on this Top Mortgage mistakes list. A lot of people tend to overbuy, they figure that within the next few years their income will increase, and so they take out a bigger loan than the can afford to pay. And first-time homebuyers don’t know the full extent of homeownership. They don’t think about all the monthly extras. A mortgage payment is really just the beginning of it. There’s property taxes, homeowners insurance, higher utilities bills, repairs, home improvements, lawn maintenance and more that as a renter you’re not faced with. MSN reminds us not to go over ‘the edge of affordability.
Not shopping around for rates and terms is another mistake you should avoid. The San Antonio local movers found out that a lot of people with decent credit are stuck with subprime loans which are better for people with poor credit. All My Sons of San Antonio hopes that this article will help you make wiser decisions regarding getting a good mortgage. And when you do don’t forget to call your San Antonio movers for your hassle-free move.