Even for the most financially sound people, maintaining a mortgage isn’t always easy. With such a significant amount of money on the line, keeping your mistakes to a minimum is more important than ever. However, even though some mortgage mistakes are easy to make, they’re almost just as easy to avoid. Follow this helpful guide below to ensure your mortgage stays in the best possible shape.
Not Paying Attention to Credit Reports
Sure, they’re not the most entertaining things to read. But not knowing the numbers on your credit report – and more importantly, not knowing what those numbers mean – can put you in some serious trouble. That’s because getting the best mortgage possible is based on your creditworthiness. Get in the habit of checking your reports regularly to spot both trends and errors.
Closing Unused Credit Cards
Although it might seem like common sense to close credit accounts when you get them paid off, it actually reduces your overall line of credit. Reducing your amount of available credit or line of credit can in turn lower your credit score. It is still important to pay off your bills, however, think twice before you close the account for good.
Ditching Your Home Equity Line of Credit
If you’ve already got Home Equity Line of Credit, or HELOC, it can be tempting to close it when you’re looking at getting a new mortgage. However, you never know when you’re going to need it. Moreso, it probably isn’t going to cost you to keep it around so, stick to it.
Paying More Than You Can Afford
When you’re figuring out how much to spend on your monthly mortgage, remember that just because you can afford it doesn’t mean it’s the right thing to do. When you find your dream house, it’s easy to get swept up and forget that you have other bills. If you’re just getting by, you’re probably paying too much. It’s sometimes worth altering your dream now to make sure you can afford what you want later.
Getting a New Job
Lenders are typically looking for someone with steady employment before they hand over a large sum of money. While starting a new job can be exciting, changes in employment can be a red flag. To ease these concerns, get a letter of employment that indicates you’ll have a steady income moving forward.
Mortgages are a part of life. Sure, they’re complicated but they’re almost always essential. However, by ensuring you have the right information to put you in the best situation, you’ll never run into any of these mortgage mistakes. At Liberty Lending, we’re in the business of making sure your mortgage is flawless so you can live a stress-free life.
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