Buying a Home? Avoid These Mortgage Mistake

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Buying a Home? Avoid These Mortgage Mistakes
By Homestead Road
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Consulting a non-local mortgage company
It is a common mistake made by most of the
homeowners that they approach a non-local
company. You need to understand that real
estate is local and a mortgage lender from
another state would not be able to ensure quality
services in your state. You are always advised
to consult a local mortgage company to buy your
mortgage.
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Not getting a mortgage pre-approval
There is a big difference between the mortgage
pre-qualification and pre-approval, but most of
the homeowners do not know that difference.
Pre-approval for the mortgage secures the
finances, which is not done through
pre-qualification. It is because the
pre-qualification is issued on the basis of the
information that the borrower provides to his
lender but the pre-approval is only issued after
reviewing the credit score, tax returns, pay
stubs and other financial information.

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Not shopping around
Usually, the homeowners assume all the mortgage
companies to be same and they buy a loan from the
lender they consult first. Well, that is a big
mistake you would be making. The interest rates
and the lenders fee are not same in all the
mortgage companies also, the type of service
they provide varies from one lender to another.
So, you need to shop around, look out a few
mortgage lenders, compare their services and then
choose a right one.
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Putting nothing or a little down
There are some mortgage companies that allow you
to purchase a home without or with just a small
amount of down payment. Though it is a good idea
if you are unable to put a large amount of money
down, in the case, there are other buyers who are
offering the seller a big down payment, most
probably the seller is going to accept the offer
with big down payment.

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Adding too much debt
Another mistake you need to avoid is adding much
debt after getting pre-approval for the mortgage.
You are recommended not to make any other big
purchase until you are done with purchasing your
home otherwise, it will mess up your
debt-to-income ratio and would result in the
denial of your mortgage.

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Homestead Road
So, avoid these mistakes if you want to get the
mortgage and buy a home. If you are unsure
whether you would be able to make a right move or
not, it would be better to seek professionals
help. Contact Homestead Road to any kind of help
regarding buying and selling a home.
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