Top Five Loan Pitfalls to Avoid When Financing Your Dream Home

The journey to home ownership can certainly be an adventure. For those who understand the system, this is an exciting time. For those less experienced, the road can be fraught with unexpected bumps and potholes.

But you’ve made a great decision in choosing a lending partner who can help you avoid these common pitfalls:

1. The most common pitfall to be avoided is missing information. The mortgage process requires A LOT of information, so it’s best to use a checklist from your loan officer and gather all information into one place beforehand. Also be sure to have your loan officer do a final check for accuracy and completeness before submitting your forms. What could be more frustrating than having to submit all that again?
2. Another potential catastrophic pitfall you’ll want to avert is an issue with your credit. Less than 2 years of credit history, new job, or default payments can make navigating this road treacherous. Your best bet is to be up-front and open with your loan officer about any potential issues, to make a point to know what is on your credit report and to dispute any incorrect information beforehand. There may be options to provide a letter of credit worthiness as well.
3. One pitfall that is easily avoidable in the home buying process is pushing for too-tight timetables. It’s a common one to fall into, sometimes due to our own excitement over finding our perfect place, and sometimes at the urging of an eager sales agent. To avoid stressing over a tight timeline…