Four-mistakes-to-avoid-making-while-shopping-for-a-home-loan_1136_459529_0_7066896_500When 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.