Are you buying a home and concerned about the finance aspect? There are many mistakes to be made when it comes to getting your loan approved. Save money and time with these rules.
*Don't confuse "pre-approved" and "pre-qualified" with a loan commitment. When a person is "pre-qualified," the lender is making an educated guess about how much you can borrow based on information you provided. But, when someone is "pre-approved," the lender has verified everything you provided and is offering to lend you up to a given amount. Being "pre-approved" is a better situation to be in when house hunting. This will help you, your realtor, and the seller know what your can afford.
*Be careful with the mortgage you choose. Home loans may no longer be a lifetime commitment but even for a short period of time you don't want to be stuck. Investigate all of your options, compare each worst case scenario and do the math. Look at the initial interest rates, future interest rates and payments, and any possible prepayment penalties.
*Never lie on your loan application. Exaggerating your income or putting down untruths is a federal offense. Lender rarely prosecute but if they find out you lied, they may require you to pay the loan due. Don't ever sign your name to a loan application that is not completely filled out either.
*Don't have too much credit; excessive credit can be just as paralyzing as bad credit. Even if you pay your bills on time, lenders tend to focus just as much on timeliness. So having loads of car loans and credit cards makes you vulnerable to be turned down for a mortgage. And postpone any big-ticket purchases until after you buy your home.
*Don't just hire any agent to sell your home. You want to look for a realtor(s) who specializes in your neighborhood and are top producers. Ask you prospective realtors how they will market your home and how much you should ask for.
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