Things You Shouldn’t Do When Applying for Mortgage

Get the Best Mortgage Deal

You’re bound to make many mistakes in the process of buying your first home. From not hiring the best realtor and not negotiating the best deal to not getting your finances in order before starting your search. You need to make a budget and start saving up, and you need to look into getting a mortgage loan. A mortgage opens a whole new box of potential mistakes. If you want to get the best loan possible and make your home buying process go by more efficiently, you need to avoid making certain mistakes. Advanced Title Company has enlisted some of them for you.

Ignoring the Costs of Being a Home Owner

Before you decide to join the world of homeownership, you need to think about everything that it entails. The expenses don’t end as soon as you purchase a house. There are many costs of homeownership. You need to think about such as maintenance, utilities, property taxes, and of course, mortgage payments. So before you commit to a mortgage loan, you need to be honest with yourself and evaluate how much you can afford to be able to live comfortably and still pay off your debts. Being a homeowner is expensive.

Not Getting Informed

Do not make the mistake of not learning about the mortgage process before asking for a loan. There’s more to a mortgage than just asking for it, getting a background check, and paying your monthly fees. You need to be informed if you want to make the best decisions. Talk to a mortgage specialist to get a step by step outline of what will happen from the moment you apply to the time when you close. If your lender is not able to provide that information, go somewhere else. Still, mortgage lenders shouldn’t be your sole source of information, do some mortgage research online before you ask for it. You should know that one of the mortgage requirements is to get title insurance. After all, the lender needs to feel safe in the investment as well. Call Advanced Title Company at (970) 255-7677 to learn about title insurance in Fruita and request your policy.

Settling for the First Lender

Just like with any other major purchase or decision, you need to compare different options before you decide on a creditor. Explore all your options and take your time to find the best mortgage rate you can. Shopping around can save you thousands of dollars. When it comes to mortgage, even the tiniest difference in the interest rate can make an enormous difference. Don’t be intimidated by the mortgage transaction process, look for what’s best for yourself.  Research about interest rates and added fees. Don’t become one more person in the 75% of the population who settles for the first lender.

Not Working On Your Credit Score

The fact is, the better your credit score is, the better the mortgage deal you’ll get. If you really want to become a homeowner this year and get a good loan, you need to improve your credit rating. Start by reducing your debt and letting go of some of your credit cards. Limit your spending to a couple of cards instead. Now is not the time to open up a new credit line, even if you stay under the spending limit. You should be in full savings mode. Wait until your loan goes through before you make any big purchases.

Changing Jobs

As tempting as that new job offer may be, it’s not a good idea to take it while you’re in the middle of a mortgage process. The lender will feel like they need to re-evaluate the security of your new job position and your ability to keep up with your monthly payments.  It might seem impossible, but maybe if you talked to the new employer about your situation and asked them if there’s a possibility of you starting the job once you close on the house, they will accept. Remember, to mortgage lender you need to look stable.

Signing Every Document Without Reading Them

You should never sign something if you haven’t thoroughly read it and understood it. Read the terms and conditions of your loan before you sign any binding papers.  It might be possible for your mortgage rate to change, but you’ll never know that if you don’t read the documents.

Skipping Title Insurance in Fruita

Title insurance is most likely one of the mortgage requirements, so you won’t be able to get around it. The bank needs the assurance that their interest in the property will be protected if you fail to make your payments. You are only required to get a policy to protect the lender. But if you’re going through the process, better get one to protect yourself as well. Learn all about the title insurance process and the reasons why you need it by calling Advanced Title Company at (970) 255-7677.