Don't Make Any of These Mortgage Mistakes When Applying for a Loan

The mortgage process is long and complicated. There are plenty of situations that can affect your loan results. Now it's not the time to be making any mistakes. Here is a list of the most common mortgage mistakes so you can avoid them and get a better deal.

Mistakes to Avoid When Applying for Mortgage in Fort Myers

First time home buyers make plenty of mistakes in the process of buying a house. Chances are that you're taking out a mortgage loan to be able to afford the new house. The mortgage process opens a whole new branch of potential setbacks and mistakes. You can avoid making some of them by following this short guide Schutt Law has prepared for you.

Ignoring the Costs of Being a Home Owner

Yes, being a home owner does have tons of benefits. However, it does come at a cost...several costs actually. If you’re a first time home buyer, you might be surprised at how expensive it is to own a home. You need to consider that a house requires constant maintenance, new furniture, and it also needs utilities. Those a lot of things to be spending on. Let’s not forget that property taxes are another thing you should be adding to your list of homeownership expenses. Before committing to a mortgage loan, you need to evaluate how much you can afford to continue living comfortably while paying off all your debts.

Failing to Get Informed

This is basically what everyone knows about mortgage: you ask for it, the lender gives you a background check, you get your loan (or not), and you have to pay monthly fees. A mistake many home buyers make is not digging deeper into the mortgage process. You need to learn about what you’re getting yourself into, so you can make the best decisions. A mortgage specialist should talk to you about the process in a clear manner. They will give you a step by step outline of what is expected from them from application to closing. You shouldn’t trust a lender who can’t provide that information, but you also shouldn’t rely solely on them to get that information. Do some research about mortgage before you ask for it.

Not Shopping Around for a Lender

A mortgage is just like any other major purchase. You need to compare different the options before you settle for a creditor. Taking your time to find the best possible mortgage rate can save you thousands of dollars. Even the tiniest difference in the interest rate can make a huge difference. About 75% home buyers apply with just one lender. Don’t be intimidated by the mortgage transaction process, evaluate several options before settling for one and do your research about interest rates and added fees. During the process, the lender will talk to you about getting title insurance. They need to feel safe in their investment after all. So give Schutt Law a call at (239) 540-7007 to get your title insurance process started.

Changing Jobs

The job offer for a new job may be great, but it's not a good idea to do it in the middle of the mortgage process. It makes the lender re-evaluate the security of your new job position and your possibility of keeping up with your payments. Ask the new employer if it's possible to start the job after you close on the house. Also, the mortgage lender evaluates your employment history. They look for stability. So jumping from one job to the next doesn't look good.

Getting a New Credit Card

If you're going to be asking for a mortgage loan, you should be in full savings mode. Now is not the time to acquire a new credit card and create more debt. A new credit card can affect your mortgage process, even if you remain under the spending limit.  Getting a new card means you can "afford" big expenses. Noticeable spending changes reflect on your credit report and can affect your interest rate. Just wait until your loan goes through to take out a new card.

Blindly Signing Every Document

You should never sign any document before reading and understanding it thoroughly. Be sure to read the terms and conditions of your loan, and don't just take someone's word for it. Find out if there is any scenario where your mortgage rate changes before you commit.

Deciding to Skip Title Insurance in Fort Myers

It's highly unlikely that you're going to skip getting title insurance because it will probably be part of your lender's requirements. The bank needs some sort of assurance that their interest in the property is protected if you miss your mortgage payments.  When you call Schutt Law to ask for your lender's title insurance policy, get one for yourself. If you're interested in learning more about title insurance and how you can get yours in Fort Myers, just call (239) 540-7007.