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Mistakes to Avoid When You’re Getting a Mortgage – Part 1

Brady Webb
September 23, 2024

Being a homeowner can be a big undertaking; even if you’re experienced, mistakes can still be made. It’s best to be ready and aware of potential issues during the homebuying process. Being prepared can help you avoid making any errors or devise a plan to deal with them should they occur.

Part 1 of this two-part blog lists four of eight common mistakes homebuyers usually make when getting a mortgage:

4 More Mistakes to Avoid When You’re Getting a Mortgage

Not Getting Mortgage Preapproval. By getting preapproved, potential borrowers can gain clarity about their creditworthiness and how much they can afford for a home. It provides a good starting point for the home-buying process and is a useful document when making offers. It shows the maximum amount you can spend on a house, the type of loan you will likely be approved for, and the interest rate and terms the lender will likely offer you. Preapproval assures the seller that you are a serious buyer and that your offer is being considered, especially in a competitive market. Preapproval helps you to focus your home search on a specific price range and increases the likelihood that you will be able to get a loan when it is time to buy.
Not Considering Your Credit Score. Knowing your credit score and history can give you an idea of what types of mortgages you may qualify for and the associated terms and interest rates. Checking your credit early will allow you to take the necessary steps to improve it, if needed, and increase your chances of being approved for the loan you want. Knowing your credit score before applying for a mortgage loan is essential. If your credit score is lower than what you would like, take steps to increase it before submitting a mortgage application.
Not Researching About Different Lenders. Shopping around for a mortgage is a great way to save money and make sure you’re getting the best loan for your needs. Doing your own research into different lenders and comparing loan offers can help you find one with the most favorable terms and lowest interest rates. If you don’t have the time or feel like you won’t get the best deal, consider using a mortgage broker who can access a network of lenders and possibly get you a better loan.
Not Getting Mortgage Insurance. Putting more money down when buying a home can provide a greater sense of ownership and lower the amount of money that needs to be borrowed. Traditionally, a 20 percent down payment was the norm, but this is often a difficult amount to come up with, especially for those purchasers who are first-time buyers. If you don’t have enough money for a 20 percent down payment on a home loan, you will likely be required to pay for private mortgage insurance. This insurance can cost you between 0.5 to two percent of the total loan amount over the year and is normally included in your mortgage payment.

Conclusion

When it comes to getting a mortgage, it is important to be aware of some common mistakes that can be made. More importantly, it is important to ensure that all of the paperwork is in order and to be mindful of any late payments, missed payments, and other potential financial issues that could affect the loan. By taking the time to understand the process and ensuring that all the details are in order, you can ensure that your mortgage is the best deal for you.

Apply For a Mortgage Today at American Mortgage Solutions

At American Mortgage Solutions Florida, we finance home buyers’ and homeowners’ dreams! We’re here to make the mortgage process itself a dream, quickly and easily matching you with the ideal loan for your needs. Serving Florida, Kentucky, Indiana, Colorado, Missouri, and Tennessee, our streamlined process makes it a breeze to buy a home, refinance, or tap into your home equity. If you need a mortgage loan in Cape Coral, FL, we’ve got you covered! Get in touch with us at (502) 327-9770 for Louisville KY Office and for Cape Coral FL Office (239) 766-8344 today to see your options!

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