3 Mortgage Mistakes You Can’t Afford
July 26, 2013
Qualifying for a home loan may be a dream come true – especially if you’re buying your first house. As the real fun begins, you might hire a real estate agent to help you find the best property, and you may call up a Kansas City mover and request a quote.
The moving and buying process has its ups and downs – this is to be expected. There are, however, ways to avoid pitfalls of buying a house. First-time mortgage mistakes are common. And while you may shrug off these mistakes, some wrong moves can cost a pretty penny.
Here are three mortgage mistakes you can’t afford.
- Not improving your credit score. Just because a lender approves your home loan application doesn’t mean that you’re a prime applicant. For this matter, you may pay a higher rate for your home loan. Knowing your credit before applying, and taking steps to boost your score (such as paying your bills on time and paying down debt) can help you qualify for the best interest rate.
- Not comparing interest rates. Not only should you raise your score to qualify for a good rate, you should request quotes from multiple lenders. This ensures the lowest rate and the cheapest home loan payment.
- Not understanding the costs. Closing costs and down payments are unavoidable. If you’re not familiar with these costs, a shady lender may take advantage of you. Do your homework.