Are You Ready to Shop for a Mortgage?

After saving for a home, many want to jump right into the process before conducting their due diligence. But every step toward home ownership is an important one, so review these common mortgage mistakes before you find your dream home.

Avoid These Common Mortgage Mistakes:

According to Experian, there are many mistakes that potential homebuyers make. And we don’t mean first-time buyers, but mistakes even the most seasoned buyers continue to make.

• Get Pre-Approved: While this is not a requirement, it is recommended that you visit your lender and get a preapproval letter that shows the borrower’s ability to afford a home within a specific price range. This is a natural first step, which should be done before you ever see your first home. Having a preapproval letter shows the seller that you are a serious buyer, and may give you a leg up in an aggressive, hot market.
• Check Your Credit Score: This is an easy task, all you have to do is go to Equifax and key in the appropriate information and you can get your credit score. This can impact your buying power or ability to purchase a home. This is a common mistake by many but is crucial if you plan to buy a home. If you find you don’t have a good credit score, you can get a copy of your credit report and take steps to improve your score before buying a home or applying for a mortgage.
• Shop Around for A Mortgage: Different lenders can charge different rates and when looking for a mortgage, you want to get the best rate possible. If you don’t have time to meet with several different lenders, you may want to consider a mortgage broker. They work with numerous different lenders and can find you a good rate at the best terms.
• Don’t Skip the Home Inspection: After you have found a home that meets all your criteria, it is important to schedule a home inspection. A good inspector can save you a lot of money in the long run. They can spot mold, plumbing issues, roof problems, and even pests like termites. The cost to repair or remediate all these issues can be expensive and add to home ownership costs, so you should schedule a home inspection before signing on the dotted line.

Learn About Your Area:

As you look for a home, make sure that it is in a desirable area. Many parents base their buying decisions on school systems, local activities, transportation, or medical facilities before they decide to even look for a home. But these are all important factors, especially when buying a long-term residence.

If you are considering a real estate purchase, there are numerous resources and industry experts to consider. Patrick Carroll, Dave Ramsey, and other investors have good information to share and can take some of the pain out of the mortgage and home-buying process.