Handing over the perfect mortgage application with a choir of angels harmonizing in the background and a soft aura of golden light is the dream of every homeowner. You want it to be flawless, pass every level of scrutiny, and be handed back like a one-way-ticket into the house of your dreams.
Here are some important mistakes to avoid if you want to make those mortgage application dreams to become a reality:
Many homeowners are excited to get the ball rolling. You may have scouted out some open house events in your dream neighborhood or fantasized about different floor plans, but let’s hit the brakes. Before any of that happens, you need to verify that your credit history and credit score are in good shape.
You may have looked over your credit report and decided it seems good enough. But getting a second opinion from qualified lending experts will let you know for sure where you stand and what kind of loans and interest rates you qualify for. If you get that information, you can start shopping for houses in the right price bracket.
Take the time to shop around and make a smart decision. Don’t just agree to work with the first lender you chat with before you make sure there’s not a better option out there. If there is, don’t be shy about taking your business elsewhere.
When you are creating a long-term budget, you might think you have all the down payment and interest rate figures calculated correctly. But don’ forget that the mortgage process itself comes with a price. Closing costs can be vicious, so don’t let them blindside you in the home stretch.