No matter if you are searching for a home in Locust Grove, Culpeper, or Orange, one of the most important steps is speaking to a lender. It is so important that you and your Realtor® know what your home purchasing budget is and the types of loans that are available to you before you start looking at houses. Your mortgage lender will be able to give you suggests for how to improve your mortgage profile. Even if you’ve been pre-approved, you still need to be careful when it comes to spending money. Here are some common mortgage mistakes to avoid when purchasing a home.
Mortgage Mistake 1
Only considering the national mortgage companies: Local mortgage brokers understand the market in Locust Grove, Virginia unlike the national companies whose representatives are not familiar with the specifics of the area.
Mortgage Mistake 2
Accepting the first mortgage product offered: Every lender has different products, rates, and terms that will differ. It’s okay to shop around to find the best mortgage for your needs.
Mortgage Mistake 3
Looking at houses without a pre-approval letter: Nothing is more disappointing than falling in love with a home only to find out that you are not approved for the mortgage. Speaking with a mortgage broker and getting pre-approved will give you a clear budget for your house shopping. Also when you find a house that is the perfect fit, you want to be ready to write an offer immediately.
Mortgage Mistake 4
Slowly sending in the mortgage company’s requested documents: You have to turn in a lot of financial documents in order to secure a mortgage. Tax returns, pay stubs, W-2’s, bank statements, credit history, and rental history are some of the requested paperwork. Even though it can take some time and research on your part, promptly getting all this information to the lender is important. Without all the documents, you can’t get a mortgage and the longer it takes to turn them in the longer it will take to get the mortgage.
Mortgage Mistake 5
Opening a new credit card, adding a large sum of money into your bank account, or accepting a new job: When your receive a pre-approval it’s like a snapshot in time. The moment you add a new credit card, put some stashed away cash into your account, or change jobs, you are changing the snapshot the mortgage company has of you. Your profile no longer looks the same as when the mortgage company offered pre-approval and so these changes will affect your ability to receive a mortgage. Before you make any financial changes, talk with your mortgage lender.
Are you in search of a mortgage broker to help start the home buying process? Talking to a local real estate agent in Locust Grove like Sean Jones is a great way to get some recommendations. Feel free to call or text Sean at 540-360-5166.
