Preparing to apply for a home loan takes a significant amount of effort, and as such, it’s imperative that simple errors are avoided early in the process so they don’t slow you down later. Consider these three mistakes while easily avoidable, can slow down your process considerably if ignored.
Neglecting Your Credit Score — Get your FICO and credit scores online before you meet with a lender. If you find errors in your reports, you’ll have time to meet with the appropriate credit bureau to resolve them. If you have a low credit score, you’ll have time to raise your score by paying down a credit card or paying off old bills.
Forgetting to Budget Closing Costs — Closing costs can total 2-4 percent of the total sale value, but you can get a pretty well-rounded idea of what to expect based on your Good Faith Estimate. Budget not just closing costs, but also unexpected expenditures like sudden repairs so that you aren’t in danger of missing your first mortgage payment.
Mistaking Pre-Qualification for Pre-Approval — Put simply; Pre-qualification is nothing more than a casual estimation of how much of a loan you may qualify for. Pre-approval involves an extensive application process, resulting in a pre-approval letter to show sellers. Good advice is to not start home shopping until you are pre-approved.
Stonebridge Mortgage Group can help you with your Real Estate Loans and other mortgage solutions, both residential and commercial. We serve the greater Portland area and are located in Gresham, Oregon. Call us today at 503.661.5580.