When you’re already thinking about buying your dream home, the excitement can make you forget everything else. In your rush to have the deal done, you might end up making major mistakes that will burden you with a mortgage debt you can’t afford. If you’re not too careful, the interest rates, closing costs, and other fees can become unreasonably high. Worse, foreclosure becomes a real possibility when you don’t undertake mortgage shopping with care.
Here are the top ten mortgage no-no’s:
You just pulled out your credit report and you find that your score is above 700.You figured that a new car would look totally cool in the garage of that property you have been setting your sights on. Well, you’re better off waiting until your mortgage closes and you have been given the keys to your new home. The lender might figure out that the very high monthly payments on your brand new car will make it difficult for you to pay your mortgage. It would be a wise idea to keep your credit clear of any large buys for at least six months before you apply for a mortgage. Also, you should wait for a few months before you start making major purchases. This way, you get a feel for the expenses associated with having your own home. Another idea is to start saving for such anticipated purchases like furniture months before you apply for a mortgage. When you finally own your home, you can buy these in cash.
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