Mortgage Tips & Tricks

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Since the world of mortgages is so confusing and difficult, it’s hard not to feel like a passerby while everything happens around you. Various professionals are using vernacular to which you’re not accustomed and you walk away from most conversations with more questions than you had before. If this is the case, we’ve compiled some mortgage tips and tricks in South Carolina. 

As well as first-time home buyer tips and tricks, we’ll have advice for keeping rates low and avoiding common mistakes. By following our advice, you can simplify the mortgage process and reduce the risk of poor decision-making.

How to Keep Your Mortgage Rates Low

Always Be Honest – First and foremost, we understand why some people feel the need to hide certain details on their applications. After all, it’s difficult not feeling a little exposed when everything about your life is on paper. However, the best way to ensure a smooth application and gain the trust of all parties is to be honest. 

Boost Your Credit Score – Ah, the credit score – this one number causes so much pain and anguish each year. If you want to secure the best mortgage rates this year, improving your credit score is perhaps one of the most powerful things you can do. The higher your credit score, the lower the risk for lenders. When it comes to mortgage loan tips and tricks in South Carolina, it doesn’t get much better than this. 

Increase Your Down Payment – Once again, the aim here is to decrease the size of the risk for the lender. If you’re able to put more money down initially, this reduces the required loan amount, and the lender may be willing to offer a better deal. 

Reduce Your Debt – During a mortgage application, lenders will consider your debt-to-income ratio, otherwise known as your DTI ratio. If you can reduce all other debt, the impact the mortgage has on your financial position won’t be quite so severe. As a result, lenders will look at your application more favourably.

Common Mistakes to Avoid When Applying for a Mortgage

Sadly, some prospective buyers make simple mistakes when applying for a mortgage and it means that they get stuck with a higher interest rate (or their application gets rejected completely!). Here are some mistakes to avoid: 

Not Getting Multiple Quotes – If you only get a quote from one lender, you could be missing out on a much better deal elsewhere. Fortunately, this is where we come in at BrickWood Mortgage. Regardless of what loan type you require, we will seek the best rates for your position. With so many variables that go into a mortgage offer, make sure you compare the market and get the best offer possible. 

The good news is that BrickWood Mortgage is signed up with the best national lenders. Above all else, this means that we can do your shopping for you. When you choose us, we’ll place your mortgage with the lender offering the best interest rate for your situation. 

At this point, we should note that lenders shouldn’t have to pull your credit for an initial quote. Instead, ask them to base a quote off of your estimated credit score. By doing this, you won’t have lots of unnecessary credit pulls on your profile and you can still compare quotes equally. 

Opening New Credit – That’s right – opening new credit is one of the worst things that you can do while applying for a mortgage. Whether a vehicle loan or a personal loan, applying for another source of credit while applying for a mortgage will impact your credit score as well as your DTI ratio. With this in mind, wait for a new car or a new source of credit if you’re in the middle of a mortgage application. 

Working with the Wrong People – We might be biassed at BrickWood Mortgage, but we don’t believe that anybody should feel forced into decisions. Every year, we speak to people who are tired of dealing with pushy loan officers and wish they came to us sooner. Never feel pushed into anything when buying a house – make sure you’re happy before signing on the dotted lines. 

Forgetting to Remove Freezes – When applying for a mortgage, lenders will want to review your credit. However, potential lenders won’t be able to pull your credit or check your profile if you have a freeze on it. Therefore, it’s always best to check your account before applying for a mortgage. If you have any freezes on your credit profiles, remove them as soon as possible (you can normally do this by contacting the appropriate credit bureau by phone or online).

With this, you have some more home loan tips and tricks in South Carolina.

Questions to Ask a Lender or Mortgage Company

Whether you’re looking for VA loan tips and tricks in South Carolina or any other type of loan, there are some questions that you should ask if you want to understand your mortgage properly. Below, we’ve listed just some of these for you.

This will determine your monthly payments and the percentage of your payments that go toward the actual loan compared to interest payments.

Depending on the agreement, this can mean a difference between 5%, 10%, or even 15% or 20%. When it comes to an FHA loan, the most common down payment for first-time buyers is 3.5%.

This is an important question because it determines how long you will be paying the mortgage. Will you be paying it for 15 years, 30 years, or longer? Generally, 15 or 30 years are the most common options.

Currently, we offer both adjustable products and fixed products so we have expertise in both areas. When looking for a mortgage, ask this question to be sure about your mortgage before signing. Typically, a fixed rate will last for the duration of the mortgage.

Finally, remember to ask your mortgage company about this process. When buying a property, all rates need to be locked before closing. Every lender has unique rate lock policies, so it’s best to check.

Contact Us Today – If you need help obtaining a mortgage or worry about not getting the best rates for your financial position, contact BrickWood Mortgage today!

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