The mortgage process can be scary. If you are looking to obtain a home loan for your first home or a new home, you may feel overwhelmed by the process, which tests your organization skills and patience. It can be incredibly stressful, which is why we thought it would be a good idea to take a look at some common pitfalls people make during the process. Here are 3 things to remember as you shop around for the right mortgage:
Know your credit score: You would be surprised how many people don’t know their credit score before they start shopping around for a mortgage. This is Mortgage 101. It’s imperative that you get copies of your credit report (go to http://www.annualcreditreport.com for your free annual reports from the major credit bureaus) and look for any errors that could be lowering your score. If your score isn’t as good as you would like, look for ways to improve your score before you apply. The UNITY Visa Card, for example, is a secured card designed to rebuild credit.
Avoid major changes in your credit: This is another way to easily hurt your chances of obtaining a mortgage at a good rate. The truth of the matter is that credit bureaus don’t like big changes that happen very quickly, and your score will drop accordingly. Applying for a lot of new credit requires hard credit inquiries, which can lower your score. In addition, if you close old credit card accounts, the amount of your credit available will drop – which can also lower your credit score. This is not the time for drastic changes.
Shop around for your mortgage: Although we would love your business, we recommend you shop around to find the best rate and lender possible. Look for a mortgage provider who charges low fees, offers a good interest rate and understands your needs. If you’re interested in knowing why you might want to choose OneUnited for your home loan, please contact one of our friendly Loan Consultants or learn about the OneUnited Bank Waive Home Loan Program.
For more information about shopping for home mortgages, please consult our Resources Page, so you’re armed with the knowledge to close the deal of your choice.
