3 Common Mortgage Shopper Mistakes By general consensus, most home buyers wou…

3 Common Mortgage Shopper Mistakes By general consensus, most home buyers would agree that sometimes the mortgage experience can be both stressful and complicated. There are a lot of mistakes that can occur, and because of that much due diligence has to take place before diving in. Our goal here at WBM Corpus Christi is to lighten that load and help your journey to home ownership be far less complicated, certainly less stressful and most definitely a memorable one. If you are on the market for a home, you have to be wary of these common mistakes. To give you an idea of some of these blunders, here are 3 of the most common ways home buyers can inadvertently slip up while looking for a mortgage. 1. Applying for new credit: Lenders will see patterns of you attempting to borrow more money as a potential red flag. This activity can cause delays and can potentially change the terms of your financing or even worse may get you declined altogether. On top of that, credit inquiries put a ding on your credit score which is another factor that could effect your application for a loan. 2. Waiting to save up your 20% down payment: When applying for a conventional home loan, the rule of thumb is to submit a down payment of 20%. There are a few valid reasons for doing so. The most notable is that it gives you the ability to avoid paying for private mortgage insurance otherwise known as PMI. PMI equates to roughly 0.3% to as much as 1.15% of your total loan amount. However, with rates being what they are today, and the fact that mortgage rates and home prices are steadily rising, waiting could end up costing you more in the long term. In addition, there are other options like down payment assistance programs that could possibly get you in that home of your dreams for far less down than you originally thought, assuming you qualify. 3. Make undocumented deposits: Large deposits, but sometimes even small ones must be sourced unless they are already identified. This is another common mistake prospective home buyers make that can delay the loan process. Be sure to make copies of checks and deposit slips. Avoid depositing cash and keep your deposits small and separate. So those are just 3 of the more common blunders that occur when looking for a mortgage. Here is a BONUS fourth and possibly the most important. ( NOT ASKING ENOUGH QUESTIONS) Never be afraid to ask questions. If you're uncertain about what you should do, we are here to help you through the process, even long before you intend to buy.

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