Weatherstone Mortgage Corp_Common Mortgage Mistakes 516-349-8181

WHAT ARE THE THREE BIGGEST MISTAKES TO AVOID WHEN PURCHASING OR REFINANCING A HOME?

1. Failure to examine and repair any credit problems prior to applying for a loan.

Good credit means 5 or 6 solid pieces of seasoned credit like a car loan, current mortgage, major credit card, or store or gas cards at least 2 years old with no late payments. A history of late payments or high debt levels can also affect lending decisions. However, if you have had past credit problems, financing can still be arranged.

2. Failing to realize how much money a lender is willing to loan.

Whether you're purchasing or refinancing, most lenders have limits on how much money they will loan. The decision is based on the LTV or loan to value ratio. For a refinance, most lenders won't lend more than 90% of the value of your home. On a cash out refinance the ratio is 75%. On a new home purchase the ratio is as high as 95%. What can you do if you don't have 5% for a down payment? There are a few 1st time home buyer programs available that only require 3% down. The other 2% can be a gift from immediate family, grants, unsecured loans from your employer or non-profit organizations or government agencies.

3. Failure to research and find a reputable, honest, and experienced mortgage company or broker to help finance your home.

The first question to ask a prospective consultant is: "Can you furnish me with the name and phone numbers of three past customers?" If he hesitates, that's a bad sign. The second question should be" "If the loan gets rejected, will you return the application fee?" The third question is: "How long have you been in business and have you ever had your license suspended?"

See Your Mortgage Broker First to Pre-qualify Before Beginning Your Real Estate Purchase or Refinance

Registered Mortgage Broker, NYS Banking Department
All Loans Arranged Through Third Party Providers

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