HOME LOANS >> HOME FINANCING MISTAKES

#1. Choosing the Wrong Mortgage Type/Program
There are many mortgage products on the market now, so it's important for you to do your homework to determine which type is best for you, and which lender offers the best terms for that type of loan.

#2. Letting Qualifying Ratios Get Out of Hand
Most lenders use housing ratio (front-end ratio) and debt-to-income ratio (back-end ratio) to partialy determine your eligibility. If these ratios exceed their limits, your loan may be declined due to insufficient income. Make sure you know the lenders' ratio limits.

#3. Not shopping around for your loan
There are thousands of mortgage lenders and each of do good in certain loan progarms. You just need know how to shop for the right lender who offers you the best rate & term combination.

#4. Solicit Price Information Without Providing All The Information About Your Loan
Prices vary with numerous borrower, property and transaction characteristics that lenders believe affect their risk and cost. These include loan size, credit rating, type of house, your ability to document income and assets, etc.

#5. Looking for a home without being pre-pproved.
Pre-approval and pre-qualification are two different things. During the pre-qualification process, a loan officer asks you a few questions, then hands you a "pre-qual" letter. The pre-approval process is much more thorough: your lender will underwrite your loan application and then give you a loan committment or a conditional loan approval subject to certain conditions. You will know if you can satisfy the conditions to close your loan or not.

#6. Refinancing your home without doing a break-even analysis.

Determine the total transaction costs and how much you'll save each month by lowering your monthly mortgage payment. Divide the transaction costs by the monthly savings to determine the number of months you'll have to stay in the property to recoup your refinancing costs.

#7. Making verbal (oral) agreements!
Advertising or verbal messages are not always reliable. Good Faith Estimate (GFE), Truth-in-lending (TIL), Rate Lock Confirmation, Committment Letter or Conditional Loan Approval are few important document you wants to have them in writing.

#8. Not getting a written good-faith estimate.
Within 3 working days after receipt of your completed loan application, your mortgage company is required to provide you with a written good-faith estimate (GFE) of closing costs.

#9. Not providing your mortgage company with documents in a timely manner.
When your mortgage company asks you for additional paperwork, they're likely trying to get you approved If you don't quickly respond to your broker's requests, you could end up paying higher rates should your rate lock expire.

#10. Not getting a rate lock in writing.

When a mortgage company tells you they've locked your rate, get a written statement detailing the interest rate, the length of the rate lock, and other particulars about the program.

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4:	Arizona mortgage rates
5:	Arizona loan programs
6:	Home financing mistakes
7:	Home financing tips
8:	Mortgage lending process
9:	About Sean Nguyen