As experienced Dallas-Ft. Worth realtors we understand the one part of buying a home most people dread the most – getting a mortgage. While it’s stressful enough on its own, there are some mistakes commonly made that you want to avoid if at all possible! Here’s the low-down.
Start looking for several mortgage lenders to meet with in the weeks before you begin your search. Why not just one? You could be spending a lot more than you imagine by meeting with only one mortgage lender. The offers and interest rates often vary between lenders, and saving that half a percent could save you a bundle. Be sure to request a good-faith estimate to ensure you’re comparing the same information (fees, interest rates, etc.) between lenders.
Stay put at your job and avoid multiple credit inquiries. When getting a loan pre-approval lenders want to know that you’re consistent when it comes to employment and bringing home a paycheck. Try to avoid switching jobs until after closing on your home if possible. It’s also a good idea to avoid anything that may make it look as though you’re trying to borrow money when you’re already trying to get a mortgage. Requesting an increase to your credit limit or opening up a new line of credit (getting another credit card) isn’t recommended prior to closing either, as these inquiries can put a substantial dent in your credit score.
The pre-approval – not the same as a mortgage pre-qualification! What you want is a mortgage pre-approval, which means ultimately that you’ll have a written commitment stating the lender will finance up to a specific loan amount. Many sellers require this, as a mortgage pre-qualification only estimates what you can afford in terms of a loan and is NOT a guarantee of approval. Make sure you know the difference!
Buying a home can be a stressful and complicated process, but avoiding mistakes when it comes to getting a mortgage can make it less stressful. Do your homework, and keep in mind you’re trying to make the most important investment of your life – a home your family will love and where memories will be created.
At Team Nelson we know the stress you face not only in getting a mortgage, but finding the perfect home for your family. Our DFW real estate professionals know the market and what’s available. Let us help you find your dream home!