Wednesday, March 26, 2014

Boston, MA Mortgage Mistakes You Can't Afford to Make

Landing a mortgage loan opens the door to home ownership in Boston, MA, but it’s no longer as easy as it was during boom times. While there are numerous new mortgage-lending regulations to protect you, there are many new rules to protect lenders from defaults by borrowers too. If you want to buy a home today without overpaying for a mortgage loan, you’ll need mortgage market savvy, a serious job, excellent credit, sufficient liquid assets, and limited debt.

While any mistake can kill the deal, here are the top mortgage mistakes:

Flying blind. Learn the mortgage market before jumping in. Luckily, reliable mortgage information is at your fingertips. Seek out independent, reliable sources to learn about the different types of mortgages and the risks and costs associated with each.

Waiting for the bottom. If you are waiting for interest rates to hit bottom, you’ll never move until rates start to rise. The bottom of any market can only be seen in hindsight. Buy a home because it’s cheaper than renting, you are financially prepared for homeownership, and the move fits your lifestyle plans.

Not checking your credit. If you wait until you apply for a mortgage and let the lender check your credit, it may be too late. Credit report errors happen and only you can correct things that deflate your credit score. AnnualCreditReport.com is the only federal government approved way to get your report for free.

Failing to shop around. Today’s mortgage market is online and offline, through banks, mortgage lenders, mortgage brokers, credit unions, local, state and federal mortgage programs, seller financing, and other sources. Check them all.

Shopping with empty pockets. Get pre-qualified for a mortgage. That gives you home price-shopping parameters, negotiating strength, and credibility as a serious buyer.

Not locking down the rate. Even with pre-qualification, rising rates could price you out of the mortgage. With Mortgage Match, you can lock in your rate the moment your application for a loan is approved.

Buying over your head. Check your budget, a budget lets you know where your money goes, where you can cut costs and what you can afford to pay for a home, including the mortgage, property taxes, insurance, and monthly maintenance and utilities. Borrow what you can truly afford, not what the lender is willing to lend.

Wimping out. Buying a home takes guts. Be aggressive. Follow the above advice, get in touch with a local Boston, MA realtor and you’ll know where you can get tough and where you can give. Without the guidance of a local expert, it can be tricky to cover all of the city's vibrant neighborhoods! As a Boston real estate agent my services extend beyond helping buyers and sellers through their transactions. I thoroughly enjoy getting prospective residents familiar with their surroundings and exposing them to the best of everything Boston, MA has to offer. I hope to speak with you soon!


Lucas Garofalo
Keller Williams Realty
(617) 861-3631
Lucas@LucasBostonHomes.com

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