When Applying For A Mortgage, Avoiding These Common Pitfalls Will Smooth Your Process
Making the decision to purchase a home is a big one, and the excitement should be enough to buoy you through the logistics of actually securing the financial backing you need. Securing a mortgage, however, can become increasingly difficult if you make one of these common mistakes. Avoid them, and you will avoid headache and hassle.
- Not Checking Your Credit: Investigate your credit score before you go out to get a loan. Your mortgage lender will look up your credit report and FICO score, so it will behoove you to know them in advance. Federal law allows you to secure a credit report for free once a year, so there is no reason not to do your homework on your credit.
- Jumping Jobs: A mortgage lender will not just look at the numbers when considering your loan- they will also look at you. Try to keep your life as stable as possible while going through the process of securing a mortgage.
- Not Dumping Your Debt: If you have too much debt, mortgage lenders will get wary. Calculate your debt to income ratio and if your monthly debt payments are 40 percent or more of your gross monthly income, work to minimize your debt before applying for a loan.
- Assuming You Are Approved: Just because you have been pre-approved on a mortgage does not mean that money is definitely coming your way. Your lender will need to double-check your credit and verifications before they will give you final clearance.
To better understand the home buying process in the Bay Area, contact Andraya Coulter. As a home lending expert in Northern California, I can guide you through the process to help you get you into your dream home. With my dedication to knowledge, commitment, and trust, I look forward to creating a positive mortgage experience with you.