San Diego Sunny Homes
How to Avoid the Common Mistakes During the Loan Process
Decide what loan is right for you. If you intend to buy a bigger house in a
few years, an adjustable mortgage may be the right one for you, but if you
intend to stay in your home longer, you should probably opt for a fixed rate.
You'll pay a higher rate, but you won't be subject to "payment shock" that
sometimes comes with some adjustable-rate mortgages (ARMs).
Pre-qualification is just a quick check based on the financial information an
Many people have debts on their credit reports that they don't even know
about, but need to be corrected. That's why it's always a good idea to get a
copy of your credit report as soon as possible and apply early for a mortgage
For more info on your credit score and how to improve it go to: www.myfico.com
A mortgage professional can tell you that a rate will be locked in, but such talk won't help you at closing if the rate has changed and you've got no written proof of the previous arrangement. "Locking in" your rate or points at the time of application or during the process of the loan will keep the rate and points from changing until closing of escrow process.
Within 3 working days after receipt of your loan application, your lender is required to provide you with a written good faith estimate GFE of closing costs. You may want to consider requesting a GFA from a few lenders before submitting your application. With a few GFEs to compare, you can educate yourself regarding the costs of your transaction.
You can buy family room furniture for your new home, hi-fi stereo system or your dream plasma TV after you close the deal.
All this can negatively impact your loan approval.