Getting a mortgage is not as easy as you might think. There are many things that could come between you and the financing that you need for your new home. I have collected information about some common mistakes that can hurt your chances of getting a mortgage so that you can avoid them. One thing that can hurt your chances of getting a mortgage is applying for other credit around the same time as the mortgage, such as a car loan or a new credit card. Also, job hopping makes lenders hesitant to approve a mortgage because they can not be sure that the income that you have right now will be the same as the income that you will have a few months down the road.
Also, it is wise to check out your credit report well in advance of applying for a mortgage. Not only do you need to know your “number’ so you can know what to expect for an interest rate, you also want to have time to get any mistakes that are on your credit report fixed. Fixing credit report mistakes can take a couple of months, so be sure that you leave yourself enough time to ensure that the report that lenders will see is accurate.
With all of this talk about things that can hurt your chances of getting a mortgage, you are probably wondering if there are things that you can do to increase your chance of success. Comparison shopping and pre-approval are two ways that you can increase your chances of getting a mortgage that is a good deal. A pre-approval can be useful for a few reasons, one is that you will be told how much house you can afford and another is that a pre-approval shows sellers that you are serious about buying. Comparison shopping is extremely important for mortgages, given how much banks can vary in what they offer as well as the enormity of the commitment that you make when you take out a mortgage. Make sure that you understand fully what each lender is offering, and do not forget to figure closing costs and any other fees into the total package of what each lender has to offer you.
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