Know how to avoid these mortgage mistakes when buying your next house.
If you are looking to buy your next house, chances are you will be taking out a mortgage. Before you even start looking at potential houses, you need to figure out how much you can actually afford. When it comes time to calculate how much you can afford, avoid these common mortgage mistakes.
- Not comparison shopping – not all lenders will give you the same terms on a home loan. Shop around and figure out which lender will give you the most favorable terms. When asking for quotes, make sure you are asking in the same week. If you get a few quotes within a 14-day window, it will count as one inquiry on your credit score.
- Not knowing your credit score – not knowing and fully understanding your credit score is one of the biggest mistakes you can make when it comes to finding the right mortgage. If you have a low credit score, consider waiting a while to start your home buying process until you can get it to a more favorable number.
- No accounting for all costs – online mortgage calculators can be very helpful, but they are only as good as the information that you provide. They will not be able to show you what you will be paying for property taxes or your home insurance policy. Forgetting about certain expenses could bring your monthly costs up a few hundred dollars.
- Not understating the whole process – if any of the first three points sound a little foreign, you may have some more research to do before you are ready to buy. The more you know about the home buying process, the less likely you will be to make a costly mistake.
Working with the right lender can help to make the home buying process much easier. for all of your home loan needs in Texas, Walnut Creek and all of California, contact Andraya Coulter.