When it is time to apply for a home mortgage, this process can certainly be overwhelming. A home loan will probably be the biggest debt of your life. This face in itself may be hard to digest. So, too, is the process of getting all of your paperwork ready in order to get a pre-approval on a loan. There are ways you can make this process a little less daunting by avoiding some common mistakes.

1.) Ignoring your credit score. There is no reason to go into a lender’s office unprepared. Request a copy of your credit report well before you are thinking about actually applying for a mortgage. You will need enough time to fix any mistakes on your credit report, in order to boost your credit rating. You will need a good credit score in order to secure a low-interest mortgage.

2.) Not doing research on possible federal or state programs available. The government, usually at a state level, will offer a number of grant programs for first-time home buyers. These programs are put in place to help out with closing and down payments expenditures. Find out if you qualify for any of these programs, and you may end up saving thousands.

3.) Not getting pre-approved for a mortgage. Most home buyers get pre-approved mixed-up with getting pre-qualified. Pre-approval means that the candidate has already gone through the loan process and has been granted a loan. In this case, all that’s missing is a house. On the other hand, a pre-qualification is only a prediction by a lender on the amount you may be eligible for due to debt/income ratio.

4.) Buying too big. Lenders will often approval an individual for more than they can actually afford. This does not mean you should go and buy the biggest house on the block. Make sure you are in tune with your finances and that you buy within your budget. Remember, as a new home owner you will be responsible for any unexpected damages that occur to the property.

5.) Not comparing loan rates. Shopping around for the best interest rate you can get for your credit score is essential. Being an informed consumer can go a long way in securing the best possible rate for your mortgage.

6.) Paying too much for unnecessary fees. Too often, lenders will add on services fees unnecessarily. Make sure you review the fees you are getting charged. Bring up the matter with your lender if you feel like you are being unfairly charged with excessive fees.

7.) Being unprepared for closing. Often, home buyers are caught off guard with the actual big-ticket expense of closing costs. These are attorney’s fees, title insurance and other such expenses that have to be paid for at the time of closing, when you are handed the deed to your new home. Make sure you prepare for this by getting an estimate of how much this will cost early on in the process.

8.) Not having money put aside for unexpected expenses. Too often, people will spend all of their money on the process of securing a home mortgage and moving into . The house without taking into account any unexpected costs. You are now your own landlord, responsible for any faulty plumbing or water damages, make sure you are financially prepared for any of these surprises.

Author Bio: Find out more about www.secondhomemortgages.org. You can also check out www.flfirsttimehomebuyers.org information.

Category: Finances
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