5 Big Home Finance Mistakes –Part I

1. Choosing the wrong mortgage – People tend to take up wrong home loans because they are in need of a loan.  Before you select a home loan, check well. Find out all the options, compare them and then only select the best one. Find out the interest rates, payment, time and everything you need.

2. Confuse about “Pre-Approved” and “Pre-Qualified” – Pre-approved and pre-qualified may not mean loan commitment on the part of the lender. These terms are ambiguous and so should be clarified when you go to the lender. Find out what additional steps of verification is necessary for a loan. 

3. Taking Too Much Credit- Too much of credit against your name will negatively affect your home loan application. When lenders find out you have too much of loan to repay, they will turn down your application. So do not buy anything with a big ticket with credit before applying for home mortgage.

4. False information in the Loan Application – Never put wrong or false information on the loan application. This is the worst case. This may lend you up in jail as it is a federal offense. Do not exaggerate your income. Never offer such other financial information which is not actually true.

5. Signing without seeing – Do not be desperate to get a loan. First read the loan application properly and then sign on the dotted lines. Never sign in an application which is not complete. Loan officers may play with the incomplete form and so check it well before signing.