Getting a mortgage is not easy task. The entire process of It’s a extreme time-consuming and complex and may be one of the most important incidents of your life, at least in financial terms.
In this article we have discussed most five significant mortgage mistakes tips to avoid.
1. Not checking your credit
Before seeking mortgage, you must know about status of your credit. A bad credit score can smack your mortgage interest rate quite a lot of percentage points or stop your application to approve.
Make sure always check your credit status before apply – many months before looking a loan – in case any changes come to your mind or need any change in future.
2. Applying for new credit together with the mortgage.
Before or during mortgage-application process try to avoid applying other new credit type.
Whenever you make application for new credit that means you are welcoming big credit risk, at least initially stage. Suppose you apply for car loan, auto loan or a credit during the same period of your mortgage application, then there is more chance to reject or deny credit score due to your finance conditions.
3. Incapable to analysis the total coast of housing payment.
PITI, interest tax and principal comes under mortgage payment. Future homebuyers commonly do mistakes that they never analysis their insurance and property taxes or insurance premium into overall mortgage budget.
The debt-to-income ratio, normally calculate if any borrower can create some certain mortgage payment, is the put forward PITI cost divided by total monthly income.
4. Not seasoning your assets
The lender or bank will take time to know your finance status because they want to make sure whether you are eligible to repay your mortgage installment each months. So your mortgage loan can go to your favor if your credit has minimum balance for few months.
Job hopping is another major issues of mortgage approval. Before accepting your application a underwriter will inquire your monthly income and employment history details. About your consistent monthly income, job time length, etc. So we advice you never jump one job to other before or during applying mortgage application.