Rates change constantly and although they could get better they could also get worse. Waiting for a better rate may not be the best idea. With rates at historic lows because there’s not much upside. Even if rates improved it’s not going to be by much and won’t have a huge impact on your payment. However, we could see sharp spikes higher that could increase rates and your payment to a point where it disqualifies you.
- Waiting to get Pre-Approved
To get pre-approved for your mortgage is one of the first steps in the home buying process. When you’re shopping for a new home, it’s important to leave as little to chance as possible. Because you need to be able to act quickly when you find the right property, and you want the seller to know you’re serious, it’s important to be pre-approved for a mortgage. When you’re pre-approved you can make an offer on your dream home with confidence, knowing that you are approved and can afford to buy that home. Being pre-approved before home shopping can also allow you to be able to negotiate a better price for the home you want to buy.
- Making A Small Mistake
You forgot to pay off your monthly Target credit card. It happens, we all do it but you never think about the consequences. If you have late payments on your credit report it makes it ten times harder to procure a mortgage. A late payment could drop your credit score 60-110 points and stays on your credit report for 7 years. This could be detrimental to someone with an average credit score. If you have a 620 and end up making a late payment that drops your score by 60 points you could end up with a 560 credit score. This, of course, makes it almost impossible to get a mortgage.
In order to reduce the risk of late payments, talk to your bank about auto payments which will ensure you from never having a late payment.
You see their name everywhere and you already bank with them so why not get your mortgage from them? Well, big banks such as WellsFargo or Bank of America will not be as responsive as a small mortgage company. Brokers have the ability to shop around for you to get the best rates. They have direct contact with lenders and will do all that they can for you. Constant communication makes the loan process ten times easier. Getting a mortgage is stressful and with no communication from your lenders it makes it even more stressful. Going local and small is the best decision for one of the biggest steps in your life.
Coastlend Mortgage is here to keep you from making these mistakes. We keep track of your loan after you close, have open lines of communication for all parties involved, we offer financial advice or recommend financial advisers and lastly, we’ll do all that we can for you!