Thursday, June 11, 2015

Vahe Hayrapetian on Mistakes to Avoid in Applying for Mortgage Loans

For most homebuyers, mortgage loans is one of the best ways to afford a new house. Many homebuyers just like you are practically lining up so they could hand in their mortgage application in the hopes of finally owning their dream home. However, because the business of finance deals in exact numbers, your chances of getting approved would be better if you do the same thing. Many homebuyers make glaring mistakes in the initial stage of financing for their home. Mortgage financing specialists like Vahe Hayrapetian say that knowing these mistakes can help you avoid them and possibly speed up the process.

Lying About Income and Debts

The first thing lenders look for when you’re applying for a mortgage loan is your financial details, your debts and income. It’s not really a good strategy to lie about your debts and income just to save a few bucks on taxes and insurance because, sooner or later, the truth will come out. When the lender finds out, it usually doesn’t end well for the borrower, often leading to getting denied. The best thing you can do is to just be honest about your finances.

Forgetting About Your Credit Score

Your credit score will also determine whether you’ll be getting good rates or not. Lenders use your credit score to know your capacity to actually pay your bills on time. A low score means that you’ll pay a higher interest rate and would likely find it more difficult to find a lender to give you mortgage money. Before you even start looking for properties, you need to get a credit report and work at increasing it if need be.

Not Saving Enough Money

Mortgage loans don’t make your money problems go away. They’re designed to make it easier for you to handle your finances. That being said, homebuyers need to make sure that they have enough money to cover both the down payment and prepaid items like homeowners insurance and tax escrows. This way, lenders will be more willing approve your mortgage loan.

Mortgage financing experts like Vahe Hayrapetian recommend that homebuyers of today be cautious about dealing with real estate and finances. Consumers who prepare for the worst often and provide all the necessary information early on increase their chances of having a stress-free transaction.

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