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Tips for a successful home financing experience

Whether it’s your first home or your retirement home, there are ways to avoid having costly mistakes when it comes to getting your mortgage.  The home buying experience is always much easier if you have developed a relationship with two very important people – your mortgage lender and your realtor.  Establishing a relationship with your mortgage lender can help you sidestep many of the problems that home buyers sometimes unexpectedly experience in the process.
What is the most common issue for people when applying for a mortgage?
Having issues on their credit report is the most common problem that people encounter when applying for a mortgage.  This can be a problem even for people who are current homeowners.  Always get a free copy of your report so you know your score and have time to clear up any reporting errors or issues you may have on the credit report. 
Is getting pre-approved before looking for a home a good idea?
Yes, there are two important benefits.  First, any credit issues are identified and you have time to correct them.  Secondly, will know how much house you can afford before shopping.  An added benefit of getting a pre-approval is that you can take more time in selecting a lender. Finding one that will help you through the entire process is a key factor in having a stress free home buying experience.  If you wait until your offer is accepted to arrange financing, you might not have time to screen your lender properly.
What if you are pre-approved, can there be issues once you find a home and are ready to move forward?
Yes, one of the biggest issues is getting pre-approved and then going out and adding new credit like store charge cards or other revolving credit.  This is likely to lower your credit score in the short term which might dis-qualify you for the mortgage and very likely change your rate or even the type of mortgage product you can obtain.  It is always best to keep your debts and assets fairly constant through the mortgage process to avoid any of these issues.
What tips would you give to a first time home buyer to have a successful experience?
First, make sure you are ready to own a home which is more than just being able to make the mortgage payment.  You need to consider the cost of ownership too which includes insurance, utilities and the ability afford home repairs, especially if you can’t do the maintenance yourself.  Second, choose wisely both your mortgage lender and realtor.  These two individuals will be the ones that help make the home buying experience either good or difficult. Finally, have at least 5% if not 10% saved for a down payment. The bigger the down payment, the more options open to you for better mortgage loan products.  These three simple steps will make the home buying process much less stressful.

Posted: 5/19/2014 with 1 comments

Categories: Homeownership, Money Matters

Ron Metsker
The FORUM CU mortgage team is awesome! I recently financed my mortgage through FORUM CU, and the team there were professional and fast. In fact, by using secure email and my scanner, I didn't have to travel to them once - it was all online, saving me precious time.

The pre-qualification process is easy and fast, too. I had a response within 15 minutes - incredible! I can't say enough about FORUM CU's mortgage program - I am a very satisfied member!
6/16/2014 1:53:08 PM

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