So you have your sights set on that perfect home, but before you get the keys to your new castle you need to get a mortgage loan.
Unfortunately, this is not as easy as it used to be. During the boom times, lenders were giving out mortgages like they were candy, but these days the whole process has become a lot more difficult.
With this in mind, you need to be at the top of your game when applying for a mortgage, and avoid any of these 4 mortgage blunders that could ruin your chances.
Not understanding the market
One of the main blunders made by thousands of people is not understanding the mortgage market before they start applying. The market is constantly changing, and you need up-to-the-minute information to give yourself the best possible chance of success.
Luckily, this information is easy to come across, as there are many websites out there that will supply you with reliable and independent information so you can get up to speed.
Waiting for rock bottom interest rates
One tactic used by those seeking a mortgage loan is to wait for the interest rates to hit rock bottom. Unfortunately, this is hard to predict, and is normally only realized after the fact and once the interest rates start to move upwards.
Instead, stop waiting for the perfect time to start applying for a mortgage, and start taking action right away.
Not looking at your credit report
It’s always a good idea to be fully prepared before applying for a mortgage, and this involves checking your credit report.
Mortgage lenders will look at your credit report, and use it as one of the main factors in coming to a decision. For this reason, you should get your own copy and look for any mistakes. If there are any mistakes, then you can have them removed, which results in an immediate bump to your credit rating.
Not shopping around
There are now more mortgage lenders than ever before, which means you should use this to your advantage in order to get the best deal possible.
Take the time to seek out as many lenders as possible, and then look to get into contact with as many of them as you can.
Also, it is sometimes a good idea to enlist the services of a broker, who can then contact multiple lenders on your behalf. This way, you can save yourself the tedious hours of doing all of the leg work yourself.