Choosing a good home can be a complicated process. There are some common problems that may occur in the transaction process. It is important to choose the right loan option for your situation. Working with an experienced mortgage broker like The Mortgage Network of Ohio will help you complete all procedures properly. Make sure that you avoid some of these common mortgage mistakes, so you are able to get maximum benefits from your mortgage.
1. Have too much debt
This is the most common mistake that people fall into. Prior to shopping for your favorite property, you have to take a look at your financial condition. Don’t forget to calculate the total income and debt in your monthly budget. Managing your budget is very useful to accelerate the loan application process. You also need to calculate your debt to income ratio (DTI), so you can analyze your chance of getting your mortgage approved. Your mortgage broker can assist with this evaluation. At the Mortgage Network of Ohio, Inc we have much higher approval for larger DTI’s.
2. Not considering your credit score
Some people don’t know about their credit score. Credit report plays an important role in determining your success in your mortgage application. When you have a bad credit score, you reduce your chance of getting your mortgage. Therefore, you need to check your credit report regularly. You can obtain a copy of your credit report from credit report agencies, such as TransUnion, Equifax and Experian through annualcreditreport.com. At The Mortgage Network we have programs for those with scores as low as 580 and we can work with you to get your scores higher.
3. Not understanding the differences between pre-approval, pre-qualification, and loan commitment
Not many people know about those common terms in any mortgage applications. If you want to be successful with your application, you have to educate yourself and understand those terms. Pre-qualification is a period when the lender is prepared to give you an estimate on how much you can borrow for the purchase of your favorite property.
Pre-approval usually occurs after the lender verifies all of your personal information and data. The lender is ready to offer you a specific loan amount under certain conditions. When you agree with these terms and conditions, you can continue with the loan commitment.
4. Skipping the home inspection
This is another common mistake that you want to avoid. The home inspection is very useful to examine your chosen property before you continue with your transaction. You will want to hire a professional home inspector to observe any issues that may interfere with the appraisal.
These are some common mistakes that you can avoid during your mortgage application process. Selecting an experienced mortgage broker can guide you through the mortgage process. Making certain you follow all rules, terms, and conditions and have a successful outcome on your mortgage application approval.
Contact Jeff at the Mortgage Network of Ohio at 513-346-1070 ext 10 to ensure a successful transaction.