As your go-to mortgage broker in Fort Meyers, we at Primary Residential Mortgage know everything there is to know about this industry. We’re here to get you the best mortgage rates on the loans you need to get you and your family a beautiful new home.
We can point you in all the right directions, and perhaps more importantly in some situations, we can point you away from certain missteps that often doom people during the mortgage process. Let’s look at a few of these typical mistakes, and how you can avoid them.
One of the largest factors in several elements of the loan application process? Credit score. Too low a score can get you rejected from many of the best types of loans, and may raise your mortgage rates higher than most people for the ones you are accepted for. You should be checking your credit at least six months ahead of searching for a mortgage, if not a year or more. This will give you time to take steps to improve it if it’s not up to snuff.
One of the easiest ways to get duped in the mortgage process is by being lulled into a false dollar figure. Some lenders hide major fees in paperwork and details, showing you a sparkly rate up front but then hitting you with those big fees near the back end when you think you’ve completed the deal.
To combat this, make sure to ask for APR costs when you deal with lenders. APR (Annual Percentage Rate) is a true rate measure that factors in all fees.
If you’re unable to come up with a 20 percent down payment in advance, you’ll be required to pay mortgage insurance to protect the lender against default. These monthly payments will often well exceed the down payment amount over the life of the loan, so if you have any means by which you might be able to come up with the 20 percent up front, it could be highly beneficial.
Many people shoot big on a mortgage, especially their first one, and while there’s nothing wrong with being aggressive, you have to be smart. Don’t forget about general home maintenance and other unexpected costs – many brokers recommend keeping at least 1 or 2 percent of your yearly budget set aside for these kinds of expenses.
Now that you’ve got some basics to avoid, ready to learn more about any of our mortgage services? Speak to one of our brokers at Primary Residential Mortgage today.