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Common Mistakes to Avoid When Getting a Mortgage

Getting a home loan or a mortgage is never easy, especially in the Chicago Mortgage market. It is a big step to take. After much thought, when you have decided to take out one, it not only takes up your time, but the process can become very complex.

If you want to have success in getting that loan from a Chicago mortgage company, learn to avoid the following mortgage loan mistakes:

Situation Ignorance

First off, you must take stock of your credit situation before you fill out any mortgage papers. A poor credit score, at best, could decrease your chances of getting a mortgage, or worse, you cannot get a loan approval at all. A bad credit score is something that ruins your ability to get a loan.

Be prepared to take on the downsides of taking out a mortgage. Keep close tabs with your credit for at least six months before applying for a mortgage at a Chicago mortgage company.

Multiple Credit Applications

Now, if you are in the process of getting a mortgage, it would prove difficult if you are also applying for other credit lines at the same time. When you apply for any type of credit, the lenders – like a mortgage company, could see you as a higher credit risk. Applying for a car loan or line of credit in the same period that you are completing a mortgage application can make your score hit high enough to either keep you from qualifying for the mortgage, or force you to accept a higher interest rate. When going through the home loan process, avoid this tactic.

Having Assets that are Un-Seasoned

Any lender or mortgage company will always want to see your ability to pay your mortgage regularly each month. A history of payments is often needed by the lender to not just check your assets, but your capacity to pay regularly. Recent deposits or transfers of your accounts from other loans immediately before applying for a Chicago mortgage won’t sit well with lenders, and could jeopardize your chances in getting that mortgage. This is a classic example of how to loan the wrong way.

Not Having a Regular Job

A significant aspect of whether or not mortgages are granted is that you, the borrower, has a regular job and therefore, a regular income. The underwriter, like the mortgage company, needs to be assured that you have a regular income to support yourself and, more importantly, to pay your mortgage well into the future. It is best to keep your job as long as possible to establish history. Taking another job in the same industry or discipline is not worrisome, but a drastic career change is a big no-no for the underwriter. The best thing is to stick to your present job, do what you have to do until you have been granted that loan.

How successful your loan experience is can depend on how well you can follow the tips given above and avoid common mortgage mistakes.