Top 5 Mortgage Mistakes to Avoid

Buying a new home can be exciting, and also downright anxiety-inducing. Here are 5 common mortgage mistakes to avoid when buying a home.

1. Doing it alone: With access to online tools and technology, it may seem easy enough to buy a home on your own. However, partnering with local experts — like real estate agents (hi!), loan officers, financial advisors, etc. — increases your chances of avoiding major risks while setting you up for success with getting your offer accepted.

2. Trying to time the housing market: It’s common to think, “I’ll wait for the rates to go down again.” However, the timing may not be what you expect. In 2022, homebuyers would have considered a 6% rate disappointing compared to the sub-3% rates of 2020-2021. With mortgage rates hovering under 8% in 2023, a 6% rate seems favorable. The best time to buy a home often comes down to when you’re ready, not when the market says, "it’s time.”

3. Skipping the mortgage pre-approval: An online mortgage calculator may give you an idea of what you can afford, but since it is not confirmed by a lender, it could lead to potential disappointment if you love a house but lack the necessary financing. Getting pre-approved gives you a clearer idea of how much you can afford, while reassuring the seller that you’re serious.

4. Neglecting your credit score: Lenders consider various factors when determining your mortgage terms. How you handle your money affects your credit score, making it crucial that it’s in good condition. The good news is that there are actions you can take to improve your score, which you should address before starting the homebuying process.

5. Not doing your due diligence: It can be tough to thoroughly evaluate a house when there are many other interested buyers and you’re racing to make an offer. A home inspector will look at the big items that you can’t readily fix, like the foundation, moisture intrusion, HVAC, and more – vital for providing peace of mind when making such a big investment.

Need referrals for lenders, loan officers, home inspectors, and more? I have a vetted list of trusted experts that I’d be happy to share. Let’s chat!

Source: OriginPoint