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10 Mortgage Mistakes to Avoid

Are you looking to finance a new home or refinance your current one?

If so, we’ve put together a list of ten mortgage blunders you want to avoid, ensuring homeownership is a joy rather than a burden.

  1. Not knowing what you can afford. Get pre-qualified or pre-approved before you even start looking at homes.

  2. Not locking in your interest rate. If you’ve been pre-approved and have a new home picked out, lock in your interest rate. Failing to do so risks the rate going up which could cost you thousands. If you can get a fixed rate, do it.

  3. Overlooking home maintenance costs. You need to budget 1% - 2% of your mortgage balance as a yearly maintenance and repair fund on top of your monthly payment.

  4. Not choosing a VA loan if you qualify. With no down payment requirement, low-interest rates (even if you have poor credit), and safeguards in place to keep you from overbuying, VA loans are a powerful mortgage vehicle for those who qualify.

  5. Not checking your credit report before you begin the home buying process. Credit reports are notorious for containing errors. Failing to check your credit before a prospective lender means you might be in for a few costly surprises. Check all three credit bureaus free at Annual Credit Report.1

  6. Not paying attention to APR. At first glance, one loan option may seem cheaper because of its lower interest rate, but in reality, it may cost more due to higher closing costs and pre-paid discount points. Compare the annual-percentage-rates (APR) to assess your options accurately.

  7. Making big purchases or opening new credit cards. Buying large-ticket items on credit before or during the loan process can hurt your credit score and increase your debt load leading to a higher interest rate on your loan.

  8. Applying for a mortgage without adequate employment history. Lenders want to see at least two years of consecutive employment. This proves stability and steady income.

  9. Listing your home for sale then deciding to stay put and refinance. Lenders don’t like giving you a loan on something you tried to get rid of just months before.

  10. Not shopping around for the best loan. Be willing to put in the hours necessary to snag the lowest interest rate and closing costs. Even half a percent could mean thousands of dollars in the future.

Want to talk more? Contact us!

1 Annual Credit - Home Page

This presentation is not an offer or a solicitation to buy or sell securities. The information contained in this presentation has been compiled from third party sources and is believed to be reliable; however, its accuracy is not guaranteed and should not be relied upon in any way, whatsoever. This presentation may not be construed as investment advice and does not give investment recommendations. Any opinion included in this report constitutes our judgment as of the date of this report and are subject to change without notice. The views expressed are those of the author as of the date noted, are subject to change based on market and other various conditions. Material discussed is meant to provide general information and it is not to be construed as specific investment, tax or legal advice. Keep in mind that current and historical facts may not be indicative of future results. Certain risks exist with any type of investment and should be considered carefully before making any investment decisions. Keep in mind that current and historical facts may not be indicative of future results. The information provided is for educational purposes only and not intended to provide any investment, tax or legal advice. Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Adviser Public Disclosure website.

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