Most Common Mortgage Mistakes

Learn from other's mistakes. Here are the most common mortgage mistakes we have come across:

• Not Cleaning up Your Credit- If you have negative marks on your credit score you could end up getting denied a mortgage or be forced to pay really high interest rates.
• Not Getting Pre-Approved- Getting pre-approved for a mortgage can allow you to get your actual mortgage much easier and possibly even save some money.
• Taking Out to Much Money- Don't automatically assume you can pay for the big monthly payments because you think your income is going to increase down the road. Don't overbuy; buy exactly what you think you need.
• Not Exploring the Market- Don't jump into bed with the first mortgage lender you come across. There are many competing companies and you could find better rates if you do a little shopping.
• Forget Closing Costs- Do not forget to plan for closing costs. Once your mortgage ends you can expect to write a check to pay for various fees including your attorney, taxes, insurance and other fees that could come about.
• Making too small of a Down Payment- The higher your down payment the lower your monthly payment. If you make too small of one you could be stuck paying very high monthly payments.
• Choosing the Wrong Mortgage- Maybe you signed up for too long for a mortgage, maybe your decision to get a fixed mortgage was not a great idea, or maybe there is something wrong with your mortgage. You want to make sure you know exactly what you are getting into when you apply for your original mortgage.

If you can avoid some of these common mistakes you should be in good mortgage shape.