2016 Mortgage Mistakes can be done by nearly any borrower, but since we can’t go back in time and change our mistakes, it is always best to be prepared and ahead of the game so no mistakes are made. When starting your home loan search, you will be looking for a lender, getting prequalified, securing a rate, and determining the loan value that you can afford and get approved for. One false move can result in you feeling the financial ramifications for months and years to come. With money being so important, you can’t afford to lose any of it arbitrarily.
If you have been following along with my blog you will remember that I mentioned why big banks aren’t the best. As a refresher course, you need to know that most times the big banks will not be very flexible with who they approve and how timely you get an approval. Big banks are responsible for keeping their risk low, so unless you are coming in with 740+ FICO credit score and a nice down payment, you are going to be out of luck. A lot of the time to avoid 2016 mortgage mistakes, you can just visit your local bank or credit union, and you will be surprised to find that you may get an approval faster and see the customer service that you would want and deserve.
2016 mortgage mistakes you can also make is waiting too long to lock in your rate for your mortgage. Even though you have worked with a lender for a few weeks and are comfortable with them doesn’t mean that their interest rates won’t increase. These days, interest rates are low, but the fact of the matter is at a moment’s notice the FED can make a statement and all of a sudden your rate will increase .25-.50% which could amount to a payment increase of $25-$75 per month. This could add up to thousands after a few years.
2016 Mortgage Mistakes can be had even by current homeowners. If you have the extra cash available throughout the course of the year, don’t be afraid to send your mortgage an additional payment just to principal. While you will not see the immediate impact of your payment, what you will find is that doing this from time to time will help in shaving years off your mortgage and prevent you from paying thousands in interest. Another way you can go about reducing the amount of interest you pay is by making bi-weekly mortgage payments. Doing this will add up to shaving significant years off your mortgage.
You are only as good as your most recent actions. You could go through life not making a single wrong payment, but then there is that one time you forget to make a credit card payment and all of a sudden you have a derogatory mark on your credit. This can be an easy 30-70 point loss on your credit score. Having a recent derogatory also will not bode well if you are in the market for a mortgage as a lof of mortgage programs don’t look too highly on recent derogatory.
If you need a professional to help you navigate the mortgage industry, then look no further. Feel free to reach out to me any time day or night at 888-900-1020, email me at firstname.lastname@example.org, inquire through my website www.loanconsultants.org.