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The 6 Biggest Mistakes You Can Make When Getting a Mortgage
Getting a mortgage is likely to be the biggest financial transaction that you’ll ever make. In order to get (and keep) a mortgage approval, there are several steps you’ll need to take—and several critical mistakes to avoid.
Here are six of the biggest mistakes you can make when getting a mortgage:
1. Not understanding the process. If you don’t take the time to learn about what you’ll need to do to get a mortgage and what the best practices are—along with understanding the different types of mortgages—you may end up being hurt financially or end up with a loan that isn’t right for you. Do some research and don’t be afraid to ask questions during the process.
2. Failing to respond in a timely manner. When you’re buying a home or refinancing your current mortgage, time is important. You should make it a priority to respond to all of your lender’s requests for documentation or information as quickly as possible. If you procrastinate, the home purchase could fall through.
3. Making changes to your finances. One of the keys to being approved for a mortgage and keeping that approval is to stay the course in terms of your finances. Don’t make any major purchases and don’t move large sums of money around, such as shifting money between accounts or making large deposits or withdrawals without documentation. Also, don’t make changes to any profit sharing or increase or decrease the amount you put towards investments.
4. Making changes to your employment status. Making changes to your employment status—i.e., your income—can wreak havoc on your loan status. Although being terminated from a job may be out of your control, there are other things you can control such as quitting your job, changing jobs or taking on a new position that is based on commission.
5. Not being focused on your credit. Just because you’ve worked hard at improving your credit score doesn’t mean that you can relax. You should still be laser-focused on your credit. Don’t open new lines of credit or close any current credit accounts and—above all—don’t be late on paying your bills or other payments that may show up on your credit report.
6. Not knowing how much you can afford. You should never buy “more house” than you can afford, even if you’re approved for it. Also, make sure that you can afford your down payment. Finally, it’s important that you understand the full cost of owning a home—from your monthly mortgage payments to relocation expenses to ongoing household expenses for your new home.
For more than 25 years, Omega Financial has been serving mortgage clients in Massachusetts. Our brokers have approximately 50 years in the mortgage business. You always will receive fast, courteous, and accurate information. Omega Financial, Inc. is a company duly licensed to operate in Massachusetts as a Mortgage Brokerage. We are located in the Town of Norwood, Massachusetts where we have been operating as Omega Financial Incorporated since 1988.
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