4 Mortgage Mistakes to Avoid

Getting a mortgage for you home can be a huge undertaking. Unfortunately, a few mortgage mistakes could cost you your new home. The following are four mortgage missteps that could prevent you from getting a mortgage:

1. Changing Jobs

   Changing jobs while shopping for a mortgage can be a big mortgage mistake. Why? When you change your job often, you are giving lenders another reason to be cautious of you. When lenders are cautious, they do not offer you the best deals on mortgage loans. As a rule, try to have a couple of years in a job before shopping for a mortgage.



2. Racking Up Debt Before Mortgage Is Settled

   This is a classic mortgage mistake. A young couple shops for a mortgage, finds the best deal and gets pre-approved for a mortgage. They are one-step closer to homeownership. To celebrate, they open a department store card and buy living room and dinning room furniture. When it comes time to sign their new mortgage, they find out that their decent interest rate has increased a few percentage points. How did this happen? Pre-approval is based on your credit rating at the time you apply. If your credit rating decreases before you sign your mortgage, your lender will reevaluate the terms of your loan and your interest rate will increase.

continued...› | 10/9/2009