Mistakes that First Time Borrowers Make

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Mortgage Loan AgreementThe mortgage application process can be a confusing one for newbies. Too often, excited home buyers make costly but easily avoidable mistakes. Take advantage of today’s impressively low mortgage rates by avoiding these rookie mistakes borrowers commonly make.

Getting One Quote

It’s common for first-time borrowers to consult one lender and apply the first loan they find. The problem with this is that the rates from one mortgage company can differ significantly from those of another. The experts at Community Lending Group suggest that before signing any papers, take your time to compare what different lenders are offering and go for the best mortgage company in Utah that offers the best deal.

Finding a Home First

Understandably, many first time home owners are too excited by the idea of buying a home that they hardly discuss their mortgage options first. Unfortunately, they miss the fact that getting financing is the most important step in the home buying process. Get a mortgage preapproval before making any moves. You don’t want to fall in love with a home before you are sure you can afford it.

Ignoring Other Expenses

You may think you can afford a mortgage, but that’s different from affording a home. There are many other expenses to factor, for instance, homeowners insurance, property taxes, home maintenance and so on. Most lenders will only prequalify you for a loan based on your average debt-to-income ratio per month.

Not Preparing All Your Documentation

You’ll be surprised by the amount of paperwork involved in a mortgage application. Find out what you’ll need from the beginning and start preparing early enough. Your lender will be able to advise you on all the forms and statements you’ll need.

If you are new to a mortgage application, it’s possible to make mistakes that could ruin you financially. Do your homework about everything as you make this crucial leap.

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