Four mistakes to avoid making while shopping for a home loan

Four-mistakes-to-avoid-making-while-shopping-for-a-home-loan_1136_459529_0_7066896_500 When buying a new home, most consumers look to take advantage of financing opportunities to fund the transaction. Mortgages are the key to potential home buyers, but much like the house hunting process, significant consideration should be paid to the procedure of obtaining financing.

Every day at Poli Mortgage Group, we field phone calls and emails from individuals interested in acquiring financial assistance, and enthusiastically help each to get started on the path to homeownership. In our 12 years of operation, we have originated more than 40,000 mortgages, and continue to offer clients up front homeowner education, competitively low rates and individualized attention today.

While applying for a loan can be relatively simple for those who approach the process systematically, it can be easy for some prospective borrowers to inadvertently affect their chances at receiving financing. If you’re looking to obtain an affordable home loan to purchase a house, you may benefit from avoiding the following common mistakes:

Ignoring your credit score
It is important you have a firm understanding of your financial standing and payment history when soliciting assistance from lenders. Any outstanding discrepancies should be amended, as companies will look at your score to determine your ability to repay the loan balance in full and in a timely fashion.

Moving to expand your credit
If you are close to applying for a home loan mortgage, it is typically a bad idea to apply for new credit cards or ask for expanded spending limits. Having too many inquiries done on your payment history in a short period of time can cause your credit rating to move lower. However, if multiple investigations by different entities take place within two weeks of each other, they could be counted as one single inquiry.

Neglecting to get pre-approved
As buying a residential home will likely be the largest financial transaction you make in your lifetime, it should be approached carefully. Receiving pre-approval can not only expedite a home sale, but also give you a better idea of the size of property that will best suit your financial requirements. In most cases, real estate professionals will not show you homes unless you come to the table with a pre-approval letter from a reputable mortgage company. Speaking with one of the experienced Loan Officers at Poli Mortgage Group can afford you the information needed to properly understand the process – and your purchasing power.

Signing with the wrong company
Though most mortgage financing organizations wish only to help borrowers, some disreputable businesses – known as predatory lenders – look to take advantage of unsuspecting home buyers. Because of this, it is important that you conduct adequate research on the companies offering financial assistance.

Poli Mortgage Group is a Division of radius financial group inc. Corporate NMLS #1846. radius financial group inc. is an Equal Housing Lender. Poli Mortgage Group is licensed in CT, DC, FL, ME, MD, MA, NH, PA and RI. For more licensing information please visit: https://polimortgage.com/licenses/ or by visiting www.nmlsconsumeraccess.org. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. Programs rates, terms and conditions are subject to change and are subject to borrower qualification. This is not a commitment to lend. The content in this website has not been approved, reviewed, sponsored or endorsed by any department or government agency.

* This radius Pre-Approval/Credit Commitment Promise Contract ("Promise") is made and entered into, as of the date of the last signature below, by and between radius financial group inc. ("radius" or "Lender"), and the below-named Buyer and Seller. In consideration of Seller's reliance on this Promise in entering into a real estate purchase transaction with Buyer, the Parties agree as follows:

PROMISE TO SELLER. In the event that a Seller is induced to accept an offer from, and enter into a purchase and sale agreement with, a radius borrower on account of this Promise in connection either with (a) a radius Pre-Approval or (b) a radius Credit Commitment and the Buyer is unable to close on such Eligible Transaction due to a mistake made by radius (with accurate and up-to-date information) on such Pre-Approval/Credit Commitment (a "Bad Pre-Approval"), then radius shall pay Seller ten thousand dollars ($10,000), subject to the terms and conditions herein as Seller's sole remedy.

PROMISE TO BUYER. In the event that radius issues a Bad Pre-Approval to Buyer on an Eligible Transaction, radius will reimburse Buyer reliance expenses up to one thousand dollars ($1,000) for a home inspection, appraisal, or legal expenses actually paid out-of-pocket by Buyer, subject to the terms and conditions herein. This payment shall be Buyer's sole remedy.

ELIGIBLE TRANSACTION. For purposes of this Promise, an "Eligible Transaction" is a purchase money mortgage transaction for a primary residence (made on or after April 1, 2018) (not made to a radius employee or immediate family member), provided that the loan is a Conventional, USDA, VA, or FHA loan product for either (i) an existing home resale or (ii) a newly constructed home that is to be delivered and closed within ninety (90) days of the P&S.

CONDITIONS. The applicable radius Pre-Approval must not have expired prior to the date of the P&S. Offers/P&Ss cancelled due to home inspection issues or title defects are not covered under this Promise, and this Promise is void if a Bad PreApproval is the result of: (i) a change in Buyer's financial position, (ii) property specific requirements or expenses (e.g. homeowner's association dues/fees, flood insurance, or property taxes), or (iii) loan product availability or underwriting requirements, or third-party actions outside of radius' control.

FUNDS DISBURSEMENT. Any funds due and payable under this Promise will be paid if requested by Buyer or Seller in writing within 90 days of the date of an applicable Adverse Action Notice and accompanied by a fully-executed copy of this Promise. Any payments made under this Promise will be reported to the Internal Revenue Service by radius on a Form 1099-MISC or as otherwise required by then-applicable law. Please consult your tax advisor for any tax implications.

Four mistakes to avoid making while shopping for a home loan

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