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Avoid Making These Mistakes When Applying for a Mortgage Loan

By November 19, 2014May 21st, 2020Insurance

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When purchasing a new home it can be easy to be swept up in the joys of home ownership, particularly if you are a first time homeowner. Owning a home can upgrade your lifestyle and give you a sense of accomplishment; and with all that in mind many rush through the mortgage application process.

 While this is an exciting time it is important to take your time and realize that things done in a rush could slow your mortgage application process down. It is important to consider some missteps before you begin your application process that could possibly delay your application review, or even get you declined by a lender.

1.       Fail to Get Preapproved

Buying a home is the largest purchase most will make in their lives, and before making any large purchase it is always wise to prepare. The best way to prepare when looking for a home is to get preapproved to see if you even qualify for mortgage financing.

2.       Altering Your Credit Behavior

Some believe if you pay off all of your bills on time, that makes it ok to use a large chunk of your credit. Too much credit is bad for your credit score and mortgage approval, because it seems to the lender that you rely on borrowing money.

3.        Overlooking the Fine Print

Many are very eager to apply for a mortgage when they have not fully researched it, and end up being approved for a mortgage they really didn’t want. Rushing when applying for a subprime mortgage is a major waste of time for both you and your lender.

4.       Bending the Truth

It may not seem like a big deal if you embellish about things like income, or credit score on a mortgage application, but in these post financial crisis days it can really hurt you. Nowadays lenders can find just about anything in your financial past, so it’s a good idea to be completely truthful.  

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