A home purchase is one of the biggest decisions a person can make, and with the amount of money involved it’s not shocking that there are many mistakes you could make during the process. There’s more to the mortgage buying process than simply having an offer accepted. When shopping for a mortgage, avoid these common pitfalls!
Neglecting to Check Your Credit
Mortgage lenders are going to comb over your credit report to make decisions on how creditworthy you are. You should also have a clear idea of where your credit score stands before shopping around for a mortgage. Low scores and errors on your credit report can take time to resolve so make sure you’re allowing plenty of time to fix these problems so you can get the best deal possible on your mortgage.
Applying for New Credit
Whenever you apply for new credit, your credit score takes a temporary dip because of the credit check. A hard inquiry on your account lasts about 12 months. So when you’re shopping for a mortgage, hold off on applying for any new credit cards or car loans and don’t close any of your current credit accounts. Continue to make at least the minimum payments on your current accounts on time. This will ensure your credit score is as high as possible.
Skipping on Pre-Approval
A lot of homebuyers don’t realize the value of the pre-approval process. It is an essential and useful tool when shopping for mortgages. Basically, you go through the process of applying for a mortgage with a lender before putting in an offer on a house. It gives you an idea of how much a mortgage lender thinks you can take on in a mortgage and lets potential sellers know you’re serious about buying later on. Any amount of credit checks on mortgage approvals within two weeks counts as one hard inquiry on your credit report, so you can seek pre-approval through a few different lenders and choose the best offer once you actually have an offer accepted.
A Title Company You Can Trust: Colony Title
At Colony Title, we will help you through the process of getting your property’s title and help you avoid the pitfalls of hidden costs while you buy your home. We are also well trained in identifying any and all errors in public records and helping you resolve them. We specialize in real estate title insurance in both Maryland and Washington, D.C., and we will perform an expert title search, check through all past documentation, and examine records for any fraud or forgery. For more information on how we can get you into the home of your dreams, contact us online or give us a call at (410) 884-1160. To get more updates on housing markets and how to get into your home, follow us on Facebook, Twitter, LinkedIn, and Google+.