5 Mistakes You Can’t Afford to Make
5 Mistakes That Can Affect Your Lending Experience and Pocket Book:
With 30 plus years in mortgage lending and working with countless Realtors, we can tell you those consumers who purchase homes can make mistakes which can cost them. We at LendPlus Financial want you to know what common mistakes people make when purchasing a home. We are your partner in the loan approval and closing process, yet, we care enough to expose the common mistakes people cannot afford.
Here is what we discovered:
1. You don’t have enough credit or excessive credit. If you do not have enough credit when you are trying to get a loan we can show you some methods to gets some credit history on your credit report, therefore, helping your credit for loan qualifying purposes. When you have excessive credit, that can cause some challenges, too. We can go over that with you when we evaluate your loan.
2. Never confuse “pre-approved” with “pre-qualified”, as they are different. Getting pre-qualified means that the loan agent looks at your information and gives you an educated guess, based on the information you gave them. Yet, perhaps you forgot something, well; it could affect the outcome of your loan when you actually start the underwriting process. So, it is always wise to get a “pre-approval” instead of a “pre-qualify” before you start looking for a home. Have a pre-approval will give you power too, as it allows the seller of the home that you are serious about buying enough to have an underwriter look at your file and give it a “thumbs up”, subject to the pre-approval conditions and an appraisal. If you are up against many other trying to get the same property, you have a higher probability of getting your offer accepted because you are “pre-approved”. Now, that’s smart!
3. Never lie on your loan application. Exaggerating your income on a loan application is not good. Putting down information that is untrue can be a federal offense. Lenders rarely prosecute liars gut if they find out later, they can call the loan due and payable. Do not sign your name on a loan application that is not fully filled out. LendPlus Financial can sit with you and walk you thru the loan application process. Your comfort level will rise and you will know your in good hands.
4. Make sure you get a home inspection on the home you are about to purchase. It is well worth the money since it provide valuable information about the home you are about to purchase. You will have knowledge regarding any issues the home has and be able to have your Realtor talk to the listing agent and the seller about remedying the issues or concerns.
5. Don’t Pay to much upfront. When you make an offer, consult your Realtor as to the amount of money you are willing to place in escrow toward the purchase of a the home. This is a balancing act as you want to put enough money to into escrow to encourage the seller to accept your offer against all others, yet not put too much. A seasoned Realtor can help you with this concern. Remember, that money is your money and it goes towards your down payment and closing costs. It is only held into escrow to show that you are serious about buying the property. There is only one way the seller can obtain that money. Consult your Realtor about that answer.
LendPlus Financial looks forward to getting you up and running in the search for your new home.