Two common mishaps that are associated with deciding on a mortgage lender are:
1) Not Being Prepared
2) Not Shopping Around - If you have decided to take the mortgage plunge, it is in your best interest to be as prepared and knowledgeable as possible. Do research on different types of lenders, such as banks, mortgage companies and brokers, and savings and loan associations. Know what items you will need to have available for the lender and shop around for the best deal. It may take a bit more time in the beginning, but in the end, it can save you immeasurable time and money.
Once you have a few lenders in mind for your loan, do research on the companies to obtain references, make sure they have a happy clientele base and a great reputation, and don't forget to find out what their success rate is. You may want to look elsewhere if more than ten percent of their loans are denied.
Mortgage Loan Paperwork
Your prospective lenders will look at many facets of your life to decide your loan terms, such as job history, income, as well as home and credit history. Be prepared to prove your financial stability and responsible nature by having the appropriate documents ready in advance.
A few items you will need are: W-2's and income tax papers, past landlord information including addresses and phone numbers, current pay stubs, and your bank account information. You will also want to prove your identity, so have your driver's license, social security number, and just in case, your birth certificate ready for inspection.
Common Mistakes to Avoid During the Mortgage Loan Process
There are many mistakes to avoid when securing a mortgage loan. Many are common sense such as: making large credit purchases prior to applying, borrowing too much money, and not planning for closing costs. Others are simply a lack in planning and research, such as: not educating yourself about the process, getting caught paying junk fees, not fixing your credit report in advance, dealing with a second rate mortgage company, and not taking the time to shop around for the best possible deal.
With a little time, research and effort in advance, the process of obtaining a mortgage loan should be a walk in the park.
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Carrie Reeder is the owner of ABC Loan
Guide, an informational website about various types of loans.