Avoiding Costly Mortgage Mistakes When Purchasing a Philadelphia Home

Avoiding Costly Mortgage Mistakes

Even though the numbers for cash home sales have increased significantly in the last year the majority of Philadelphia homebuyers are still purchasing their homes with the help of a mortgage loan. If you are utilizing a mortgage loan to buy a home in Philadelphia, you want to make sure you avoid these costly mortgage mistakes.

Being Unaware of Your Credit Score

Before you go shopping or apply for a mortgage loan it is always best to pull up a free copy of your credit report. There are many websites where you can go to pull up a copy of your credit report. You want to make sure that you know your credit score and you want to look over all of the details of your report to make sure nothing has negatively impacted your credit score that was incorrectly reported.

It is not uncommon for something to be mistakenly reported on someone’s credit report that was made completely in error or mistakenly put on the wrong person’s report. If you find anything that was reported as an error you will want to check the date of when the report was made and see if it is in your best interest to request a correction be made. In some cases, the negative report will correct itself in a shorter amount of time than it would take to have the reporter correct it.

You want to make sure that you have the best score possible to help you secure the best interest rate and loan terms possible. This can save you thousands of dollars on the lifetime of your loan.

Shopping for a Home Without Preapproval

Before you look for that dream Pennsylvania home it is always best to know what type of loan you will qualify for and the amount a mortgage lender is willing to lend to you. You don’t want to fall in love with a home that is outside of your price range. It is always best to get preapproval to get the most solid information about a mortgage approval amount before finding a home and discovering a lender will not loan you what you need to purchase it.

Only Looking at One Mortgage

In the same way, you would consult a few different contractors before having work done on your home you want to consult a few different lenders before signing on the dotted line for a mortgage. Research has shown that homebuyers who look at more than one mortgage loan have saved thousands of dollars on the purchase of their home. Those looking at more than two mortgage loans found that homebuyers saved even more money than those who looked at only two. It is always best to shop around for your best option when it comes to a mortgage loan you will be paying for many years to come.

Not Realizing There Are Extra Associated Fees

Every mortgage will come with extra fees these are the costs of compiling a mortgage loan and putting everything together to finalize the purchase of a home. You want to make sure that you are fully aware of all of the extra costs that will either be wrapped into your loan or the cash out of your pocket you will be expected to bring to the table. This can be things like earnest money, a down payment, closing costs, origination fees, and more. There is much more associated with purchasing a home than just the offered purchase price for the home itself.

Not Reading the Fine Print

There is so much paperwork involved when it comes to a mortgage to make sure that everything is as clearly communicated as possible and that both parties are protected in the purchase and sale transaction. You want to make sure that you know what you are committing to and to fully read through every bit of the paperwork in your loan. You do not want to commit to something for the next couple of decades only to find out you agreed to something you were unaware of. If you have questions about your loan terms it is always best to consult a third party through a financial advisor or a real estate lawyer.

Taking out a loan to purchase a Philadelphia home can be overwhelming but it doesn’t have to be. With the right homework and knowledge of the process and the right professional help on your side, you can find a great affordable mortgage.

If you are searching for a home in Philadelphia I am here to help. Contact me anytime with any of your greater Philadelphia area real estate needs.