Are you considering taking out a mortgage? If so, there are some things you should know before choosing a mortgage broker in Decatur, Illinois. Specifically, you’ll want to avoid these five common mistakes that could result in you paying too much money now or suffering budget woes later.
1. Not sorting out your finances.
If you apply for a mortgage before you have worked out your financial situation, you may get a bad mortgage offer or be turned down for the loan altogether.
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So, before looking at your mortgage options, make sure your finances are in order and that you have all your paperwork ready to submit to a licensed mortgage broker in Decatur, Illinois who will then find you a suitable lender. You should also obtain a record of your credit history to verify that all the information is accurate.
2. Looking for a house without pre-approval.
Many homebuyers in Decatur fall into the trap of looking at a property without fully understanding whether they would be able to secure a mortgage to pay for it. Within this context, the most common mistake they make is confusing ‘pre-qualified with ‘pre-approved.’
Pre-qualification is simply a rough estimate of how much you can borrow, and there is no guarantee that you will get it at the rate you want. On the other hand, pre-approval means that you have been through the credit review process and guaranteed a certain amount of money. Obtaining pre-approval gives you a budget, making you even more appealing to sellers because the financing is already in place.
3. Borrowing too much.
Borrowing too much money is one of the most common mistakes made by home buyers in Decatur, Illinois. This can occur for many reasons including pressure from brokers or lenders.
Be honest with yourself about how much you can afford for a house in Decatur, Illinois. Do not be tempted by overly generous mortgage deals. Calculate how much you can comfortably afford to pay each month and stick to this budget.
4. Not shopping around.
Generally, it’s not too difficult to obtain a mortgage in Decatur, Illinois. However, if you want to get the best deal, you should shop around for the best rate.
Find out what someone with your credit profile should be paying on average for a mortgage and keep looking for options within your budget. This will ensure that you get the best deal on your mortgage for your new home.
5. Paying for things you do not need.
Some mortgage options require borrowers to pay extra fees for things that are not necessary. While these fees may seem to be small numbers here and there, they can quickly add up, and you could end up paying much more than you need to.
Ensure that your mortgage agreement only covers the things you need and question the cost of any fees you think are redundant. If you are being overcharged, walk out the door. Remember that there are still other mortgage companies available to you.
Looking for a Mortgage Broker in Decatur, Illinois?
Mortgage brokers can help you avoid these five common mortgage mistakes — so why deal with all the stress and hassle when a mortgage professional can handle everything for you? If you are looking for an experienced and licensed mortgage broker in Decatur, Illinois, you can count on Compass Mortgage. Call us at (877) 793-9362 or contact us online to learn more about how we can help you make wise and informed choices regarding your mortgage financing.