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The Do's and Don'ts of Mortgage Financing

February 26, 2024•2 min read

The Do's and Don'ts of Mortgage Financing

Navigating the path to homeownership can be as daunting as it is exciting. The key to a smooth mortgage process lies in understanding the essential do's and don'ts of mortgage financing. Here, we break down the critical steps to take and the pitfalls to avoid, ensuring your journey to securing a home loan is as seamless as possible.

Do's:

1. Do Check Your Credit Score: Your credit score is a pivotal factor in determining your loan eligibility and interest rates. Ensure it's in good shape by checking it well in advance, allowing time to rectify any errors or improve your score if needed.

2. Do Get Pre-Approved: Loan pre-approval sets a clear budget for your house-hunting process and shows sellers you're a serious buyer. It gives you an edge in competitive markets and streamlines your home-buying journey.

3. Do Compare Loan Offers: Don't settle for the first loan offer you receive. Shop around and compare rates and terms from different lenders to ensure you're getting the best deal possible.

4. Do Maintain Stable Employment: Lenders value consistency. A steady job and income history signal to lenders that you're a low-risk borrower, increasing your chances of loan approval.

Don'ts:

1. Don't Make Major Purchases: Avoid large purchases, like a new car or expensive appliances, before closing your mortgage. Such expenditures can affect your debt-to-income ratio and credit score, potentially jeopardizing your loan approval.

2. Don't Miss Bill Payments: Ensure you stay on top of all your bills and loan obligations. Missing payments can negatively impact your credit score, which is crucial for securing favorable mortgage terms.

3. Don't Change Jobs Abruptly: Lenders look for stability. A sudden job change during the mortgage process can raise red flags and delay or derail your loan approval.

4. Don't Forget to Budget for Closing Costs: Closing costs can add up to 2-5% of your loan amount. Ensure you've budgeted for these expenses to avoid last-minute financial stress.

Embarking on the mortgage process armed with knowledge can transform a potentially overwhelming experience into a manageable and successful journey. If you're pondering the next steps towards homeownership or seeking clarity on mortgage options, Simplified Capital is here to illuminate the path. Our dedicated team is committed to providing you with the insights and support needed to navigate your home financing journey with confidence. Let's explore how we can make your dream home a reality, together.

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Click the Loan Product to See the Rates

30 Year Conventional Fixed Rate Primary Residence

6.375% : 6.764% APR

Rates shown above are as of November 18th 2024, 95% LTV , 760 FICO score, <40% DTI.

For an official loan estimate or fees worksheet please click here to apply

Rates are subject to change based on market conditions and may vary depending on your credit profile, loan amount, and other factors. The rates provided are for informational purposes only and do not constitute a loan offer or commitment to lend. Equal Housing Lender.

30 Year FHA Fixed Rate Purchase

5.625% : 6.579% APR

Rates shown above are as of November 18th 2024, 96.5% LTV , 760 FICO score, <40% DTI.

For an official loan estimate or fees worksheet please click here to apply

30 Year Bank Statement Loan Primary Purchase

7.375% : 7.585% APR

Rates shown above are as of November 18th 2024, 80% LTV , 760 FICO score, <40% DTI.

For an official loan estimate or fees worksheet please click here to apply