Before you rush out and get a mortgage, there are some things that you need to be aware of; some mortgage mistakes that most people make. These mistakes can cost you a lot of money and are definitely best avoided. Here are the four most common mortgage mistakes people make.
Everyone loves to shop around and use comparison sites for things like cars and insurance, but less than half of consumers do the same thing when it comes to finding a home loan. They tend to get fixated on the purchase price of their home and the initial interest rate on the mortgage.
There are other factors to consider though, such as the total price of the loan, closing costs, the nature of the loan (fixed/variable), and whether you need private mortgage insurance. Be sure to shop around with different lenders and get a few options before making a final decision. It’s the easiest way to avoid overpaying with a loan and getting more than you bargained for.
It’s important to solve credit problems as soon as possible when buying a home. Don’t leave it until the last minute. Even if you aren’t planning on making a purchase for several months, or maybe even a year, get your hands on your credit report and score now to see where you are.
Borrowers that have better credit scores tend to receive better interest rates. This directly affects how much you’ll be paying each month and how much you can afford. It might take some time to repair your bad credit score too. At least to the point you see a noticeable improvement.
Check for errors on the report that could prevent you from being approved. It’s important your report is up to date and correct. Ways to improve your credit score are to pay off balances to less than 30% of your total credit allowance, avoid using credit for making large purchases, avoid opening new bank accounts and getting new loans, and paying bills on time.
Changing jobs can be a good thing at times, especially if you’re going to get a pay raise from it. Lenders are going to want to talk to the human resources department at your new job or receive a copy of the offer letter to confirm your new status and salary.
If a borrower was to go from a salaried position to being self-employed though, then they are subject to a new set of underwriting guidelines. Lenders will closely assess your employment and income history in order to determine your debt-to-income ratio; the key metric used to evaluate whether you can pay back a mortgage or not.
Self-employed borrowers, and borrowers that rely on commissions and bonuses for income, must be able to provide two years’ of federal tax returns in order to calculate their average income. Starting a company or moving on to a commission-based salary is going to affect your ability to get approved for a loan. Wait until after you have a new home to get a new job.
The mortgage application is the first step being preapproved. Omitting information from the application – especially if done intentionally – is going to sabotage your chances to get approved for a mortgage and purchase a home.
The most common liabilities that people leave off of their applications – whether deliberate or not – are alimony and child support payments. These payments don’t appear in credit reports so it’s up to you to make a lender aware of them.
Also be sure to tell your lender about deferred student loans or if you are on income-driven repayment plans. While you might not be paying much money on your student loan debt right now, lenders are going to want to know that you can still afford mortgage repayments once student loan payments become a factor.
Doing your due diligence and learning about the mortgage process helps you to avoid these common mistakes. Communicating with your lender and doing some preparation allows you to be ready to make an offer when the time comes.
Timeless architectural features, such as courtyards, are always associated with bringing the naturally public forms to the world’s heart, building the most peaceful, secluded outdoor areas. These outdoor spaces maximize the living experience with their private space feature, which gives one the option for leisurely relaxation, recreation, or gardening. Furthermore, it has also been a […]
Imagine walking into a sunlit room with high ceilings, warm wooden floors, and a view of a leafy courtyard. How do you feel? Calm? Inspired? At ease? That’s not just your mood—it’s your brain responding to the space around you. Neuroarchitecture is an evolving domain that merges the understanding of neuroscience, psychology, and architecture to […]
A vertical garden design is a garden that grows vertically on the surface of a wall, over a column, or inside a beam or any other surface. It acts as a living wall or a surface that grows vertically instead of a horizontal surface. Vertical garden ideas have become a trend for small balconies where […]
Architecture is more than just the construction of buildings, it is a reflection of our values, art, culture, and society. It is a movement towards new, promising, and philosophical design strategies. One such movement that significantly influenced the architectural landscape is Postmodernism architecture. In this research article, readers will find a comprehensive guide for Postmodernism […]
When you are building a new home or renovating your existing space, you definitely want it to look its best and last for ages. You want something worth every penny you spend. But when we talk about making a smart choice, it’s not just about how beautiful your home looks from the outside. The decisions […]
Staircase railing design, in 2025, is surpassing mere functionality and becoming a pivotal element in interior design. Design trends embrace bold materials, sculptural forms, and thoughtful craftsmanship to elevate staircases into architectural features. From minimalist lines to artistic expressions, these 25 staircase railing ideas capture the spirit of contemporary living. Let’s delve into the blog […]
What if the home of the future didn’t have walls? Modern architecture homes aren’t just about aesthetics – it’s a rebellion. A conscious break from tradition. In a world obsessed with innovation, our homes are becoming laboratories of design, sustainability, and radical thought. Modern architecture homes are sharp-edged, glass-wrapped, tech-infused sanctuaries that defy the standard. […]
Indian homes place equal importance on pooja room door designs as they do on main door designs. With diverse and unique ethnic backgrounds, every family strives to reflect their personalities and identities in their designs. These identities can encompass religious or spiritual interests, local contexts, or other personal elements. This series of blogs, featuring 50 […]
Gate Design is an important feature of any home. Numerous scopes for experimentation open up when delving into the design possibilities. Materials like wood and black steel are popular options in Indian homes. At the same time, designers also experiment with a combination of materials that suits their aesthetic. Buying mass-produced Sydney automated gates has […]
The word “Vastu” refers to the dwelling place of humans and gods, while “shastra” means science or knowledge, hence Vastu Shastra for house is the science of architecture. Vastu Shastra for house is an ongoing practice in India since one can remember. Almost every architect and designer wields it in conceptualizing their projects. Vastu Shastra provides […]