Top 3 Home Buyer Mortgage Mistakes

1. Not checking your credit first

I’m surprised at the many times I get someone on the phone or brought to my office by their realtor who has been out viewing homes or making offers on homes and they have not bothered to check their credit.

You don’t need perfect credit or a super high score to get financing, but there are some things that will prevent you from getting a home loan.

Don’t put the cart before the horse.  Know your credit situation before you start.

2. Not knowing how much you can afford

Buying a home is a huge commitment and something you need to budget for.  You will have expenses you didn’t as a renter such as repair and maintaince, home owner’s association due, and property taxes.

I find it best to start with what are you comfortable paying for housing vs what is the maximum you can qualify for.  Say you are paying $800 per month in rent and that is where you want to keep your housing payment, then you should not look at houses that go for more than $150,000 in the Boise, Idaho marketplace unless you have a large down payment.

Lately, I have seen many people buying homes that have a home to sell.  If it hasnt sold yet, then you either have to wait for it to sell or you have to qualify as if you are going to own two homes, as you will have 2 mortgages to pay.

As in the know your credit first rule, this is something you will find out quickly when you meet with me, Roger Howell, the Idaho Mortgage Guy.
3. Not supplying your loan officer with required documentation

Getting a home loan today requries every last aspect your financial situation to be reviewed.  This means I need everything I tell you to bring to me.  It does no good to get last years tax returns if I need the last two years.  Similarly, If I tell you to give me the last 2 months banks statements, it means all of them.  Dont just drop off a printout page and expect that to work.

Your loan will not close if there is even one piece of information missing.  I do a really good job of setting up a complete loan package for the underwriters to work on.  By turning in good, solid, complete loan packages, it goes faster with less stress.

The days of reduced documentation or “no doc” loans are long gone.  If you are unwilling or unable to provide all the requested documentation, then you are not going to have a successful loan process.

I will give you a list of items needed at the start of the loan application.  Getting all of those items to me quickly is your job.  If you have any questions or think providing something on the list is going to be an issue, then lets talk about it upfront.  Its much better to confront a potential issue at the beginning rather than the day before we are supposed to close.

It takes a lot of work from all parties to get a successful home loan.  By everyone working together towards the common goal, we can make the process go as fast as possible and with the least amount of stress.  My goal as your Idaho Mortgage Guy, is to reduce that stress to as little as possible.

Have you been Pre-Approved?  Get started here!

 

 

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