Mistake 2 - Applying for a
loan without checking your
credit history
Not checking your credit
history for mistakes prior
to applying for a loan can
make it more difficult to
qualify or can make your
interest rate higher.
AnnualCreditReport.com will
give you a full credit
report containing any black
marks that appear in your
credit history with ways to
resolve these issues.
Mistake 3 - Spending more
than you can afford
Many people, especially
first time home buyers,
decide on a house and a
mortgage that is too
expensive for their monthly
income. Only look at homes
that are within your price
limit. Calculate how much
you can afford including
taxes, insurance and any
association fees you
may have to pay. Be certain
before accepting the loan
that you will be able to
make the monthly payments.
The key is to not borrow
more than you can afford to
pay back!
 Mistake 4 - Not getting
pre-approved for a loan
This is a free, easy process
that will allow you to see
how much money you are able
to borrow. Of course, you do
not have to borrow the full
amount you are approved
for - but if you do not
qualify for the amount you are looking to borrow
then you may want to rethink
your price range. Also,
getting pre-approved for the
loan shows the seller you are good for the money
and they may take your lower
offer more seriously.
Mistake 5 - Not understanding
the implications of your
loan
Many people decide to take
out interest-only loans
because they initially offer
lower monthly payments.
However, many people who have
taken out these loans are
finding that their monthly
payments go up sometimes
only after a few months.
Many people who opt for this
type of loan find themselves
in a difficult financial situation,
and many are forced to foreclose. A good
rule when looking for a
lower monthly payment loan
such as an interest-only
loan is that if you can not
afford payments on a 30-year
fixed-rate loan then you are
probably trying to borrow
too much.
Mistake 6 - Agreeing to a
pre-payment penalty
Many mortgage agencies have
a prepayment penalty that
can cost you thousands of
dollars extra for paying off
your loan early.
Adjustable-rate mortgages,
often given to people with
poor credit, can cause your
payments to go up and become
unaffordable. With
pre-payment penalties many
people are prevented from
being able to refinance or
sell their home. Congress is
in the process of regulating
this procedure, but you
should let your lender know that you do not want
a pre-payment penalty in
your mortgage.
Be sure to talk in depth
with your real estate agent
and your mortgage lender to
make sure you are getting
the best loan for you. If
you do not understand
something about your loan, be sure to ask
questions so you fully
understand it before signing
the papers. This will
help prevent you from making
a poor financial decision
that could affect you long
term.
Call us at 1-800-220-8008
or 828-452-7778 or
email us
for more
information. Find out why so
many satisfied customers
recommend Mountain Home
Properties for all your real
estate needs. |
