Apply for Mortage - Do's and Don'ts

2007-03-08 10:33:40

( Financial )



Researching rates and scouting for lenders are not the only things you need to know when you apply for mortgage. There are do’s and don’ts to follow before you apply for loans to make the whole process easier, quicker and more complete.

Things to do before you apply for a mortgage

Applying for a mortgage is not something we do everyday; therefore, it is important to research and analyze the process. It would also help if you look for a mortgage broker who will be more than willing to explain to you the whole procedure in terms that are easy to understand.

You also need to determine how much money you can spend for down payment and closing expenses when you apply for mortgage, while ensuring that you remain within your comfort level and means. The rates and terms of your loan will be affected by the amount of money you are willing to put down.

It is also important to check the facts, including the total cost of your loan at the start and for the entire period of your mortgage. While mortgage are similar to each other, there are subtle differences that could help you save thousands of money.

What not to do before you apply for mortgage

A lot of people usually take on large purchases before applying for a mortgage, thinking that it is what is best for them. However, it is better to wait until the completion of your home acquisition before getting into such purchases because your total debt is a major factor in deciding the amount of loan you qualify for.

Although credit cards are very convenient for making purchases, it should not be over used especially if you are planning to apply for a mortgage. You might not be able to obtain the best rates and terms on your home mortgage loan if your credit card bills are not paid off or outstanding balances are high. Remember that lenders look into your total debt when you apply for loans.


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