Mortgage Shopping Mistakes to Avoid ( What You Want To Know Wednesdays )

Mortgage Shopping Mistakes to Avoid

1. Neglecting to check your credit before starting the process. You will want to know what is on your credit report to make sure there are no discrepancies or ensure that you will have time to raise your score if needed.
2. Applying for new credit simultaneously. Your credit will be under a microscope, so applying for a new credit card will cause your credit score to change temporarily. Also, closing an old account will affect the amount of credit you have available. Applying for a car loan will affect your credit score as well.
3. Skipping pre-approval. Pre-approval helps significantly when you’re house shopping. Knowing how much of a loan you are approved for will give you and idea of where to find your home. Be sure to check with your Lender to see how long your pre-approval is good for.
4. Signing loan documents you don’t understand. Always ask questions about any documents you don’t fully understand. There are a lot of loan documents that you will have to sign; don’t breeze through them, read them all.
5. Trying to time the market. Some people try and wait until their market is perfect, but the market is ever changing. Waiting can mean the difference between hundreds or thousands of dollars.

*from our friends at learnvest.com

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.