Purchasing a home, be it your first or fourth, involves a long and taxing process. Many homebuyers get confused by the rules and regulations that they have to adhere, particularly when applying for mortgages.
Wasatch Peaks Credit Union shares the common mortgage mistakes that you should be aware of.
Before you even start selecting the location for your new home, it is imperative to assess your credit and ensure all the details are correct. You are entitled to free credit statements from the three bureaus namely, Experian, Equifax, and the TransUnion.
Mortgage lenders require that you have a good credit report as proof of your capacity to repay the awarded loan. They also use your credit report to determine the amount of mortgage loan you qualify for.
If you were residing in a rental apartment before, you should brace yourself for the costs associated with homeownership. Typically, it will be your responsibility to fix any problems that crop up. Many first-time homeowners are shocked by all the expenses that come with owning a home; hence the need to prepare beforehand, both financially and mentally. Some of the costs you will incur are hiring a plumber, replacing the water heater, property taxes among others.
Getting just one estimate is the wrong way to go about the application of your mortgage loan Ogden. You ought to get quotes from multiple lending institutions. Inquire mortgage rates from your local bank and the credit union. Credit unions are mainly known to offer individual home loans that can save you money.
However, you should know that every time a lender reviews your credit, it reflects on your credit score. You can avoid damaging your credit status by getting all the quotes within a two-week period, so it does not seem like you are applying for numerous loans.
Before rushing to apply for mortgages, you need to arm yourself with the right information. First off, you should find out the status of credit as most lenders use credit scores to determine a borrower's creditworthiness. Also, get quotes from multiple lenders and remember to factor in homeownership costs.