3 Mistakes Everyone Makes When Getting A Mortgage

One major miscalculation that many homebuyers make is talking to just one lender, applying for a loan, and accepting what they’re offered. Even if you’re applying to your personal bank or credit union, that’s simply not enough, according to the Consumer Financial Protection Bureau. Rather, the agency advises meeting with at least three lenders after compiling a list of potential financial institutions to ensure you know all your mortgage options.

When meeting with lenders, talk about your financial and life situations, as well as the type of loan you hope to obtain. Moreover, it’s important to learn about potential interest rates, monthly payment estimates, APR, and any other anticipated fees if you decide to accept the loan offered to you. You might also want to ask the lender to review your documents, such as income and debt statements, credit reports, and employer information, to see if they spot any potential red flags that would disqualify you from obtaining a mortgage. Do this before formally applying to protect your credit score from multiple hard inquiries.