Whether it’s your first, second, or third time buying a home, here are some mortgage mistakes that you can avoid.
Changing Jobs before Applying
If you changed jobs before applying for a mortgage, you may want to take some time before applying. Lenders will often be wary of borrowers who jump from job to job, seeing people like that as a financial risk. Take your time with your new job and start saving the necessary funds you need.
No Pre-Approval
Getting a pre-approval for a home loan means that lenders have checked your credit background, bank statements, and other necessary documents to approve you for a specific loan amount. Without a pre-approval, you’re practically a sitting a duck in the mortgage world.
Late Payment
When you have a mortgage, on-time monthly payments are required. Not doing so will result in late fees and possibly even foreclosure. If you have instances where you fall behind on a monthly payment, make sure to talk to your respective lender to discuss repayment options.
Applying with Poor Credit
Good credit is required to get a mortgage of your respective choice. A good credit score shows lenders that you’re financially responsible and can qualify for a good mortgage with lower rates. If you have a low credit score, on the other hand, make sure to wait until it is more established to apply.
Applying with Limited Employment History
Lenders will want to know that you have some form of stable employment before they lend you money for a mortgage. If you have a limited employment history, say under two years of the sorts, you may not be able to qualify. While you can certainly try to apply for a mortgage with only a history of a year, this may prove to be difficult.
Mortgages are a tricky scenario, and at Mortgages Done Right, we don’t want you to fall for these mistakes. If you need any help, answers, or are just curious as to what other mistakes one shouldn’t make when it comes to mortgages, our experienced team of mortgage brokers is happy to help. We hope that this blog entry helped educate you further about mortgages. Until next time and from all of us at Mortgages Done Right, have a pleasant day.