7 MORTGAGE MISTAKES HOMEBUYERS SHOULD AVOID

Buying a home is a major financial decision, and avoiding common mortgage mistakes can help make the process smoother. Here are seven important issues Arizona homebuyers should consider before and during the mortgage process. 

Looking at homes before understanding your mortgage options can lead to frustration, wasted time, or shopping outside a comfortable price range.

Before you begin your home search, review your income, assets, debts, credit profile, estimated housing expenses, and available loan programs with a mortgage professional. This can help you establish a realistic purchase price and monthly payment range.

How to avoid this mistake: Talk with AZ Financial before you start seriously shopping for a home. We can review your financing options and help you understand what price range may work for your individual situation.

Your credit profile can affect mortgage eligibility, available loan programs, interest rates, and other financing terms. However, making changes to your credit immediately before applying for a mortgage may have unintended consequences.

Opening or closing accounts, paying off certain debts, disputing accounts, or making other significant credit changes can affect your mortgage qualification differently depending on your situation.

How to avoid this mistake: Before making significant changes to your credit, talk with your mortgage professional about how those changes could affect your mortgage application. AZ Financial can help you understand the credit factors lenders may consider during the qualification process.

No single mortgage program is right for every homebuyer. Depending on your qualifications, property, down payment, and financial goals, you may qualify for different financing options.

AZ Financial can help eligible borrowers compare programs including:

• Conventional 
• FHA 
• VA 
• USDA 
• Jumbo 
• Non-QM 
• Investment property financing 

How to avoid this mistake: Compare available mortgage programs before choosing a loan. As an independent mortgage broker, AZ Financial can access financing options from multiple wholesale lending sources and help you evaluate programs based on your individual situation.

A lower mortgage interest rate does not automatically mean a better financial decision. Some rate options may require paying discount points or other upfront costs.

Discount points generally allow a borrower to pay an upfront cost in exchange for a lower interest rate. Whether paying points makes financial sense can depend on the cost, monthly savings, expected time in the home, and your overall financial goals.

How to avoid this mistake: Compare both the interest rate and associated loan costs. AZ Financial can help you evaluate available rate and cost combinations so you can make an informed decision.

Going directly to one lender may limit your comparison to that lender's available programs and pricing.

As an independent mortgage broker, AZ Financial works with multiple wholesale lending sources. This allows us to evaluate available mortgage programs based on your qualifications, property, and financing goals.

How to avoid this mistake: Look beyond the interest rate alone. Compare loan programs, estimated costs, mortgage insurance when applicable, rate options, and overall financing structure. 

Mortgage approval is based on financial information that may be reviewed again before closing. Changes to your credit, employment, income, assets, or monthly obligations could affect your loan approval.

Before closing, avoid making significant financial changes without first discussing them with your mortgage professional. This may include opening new credit accounts, financing furniture or vehicles, making large purchases, changing employment, or moving significant funds between accounts.

How to avoid this mistake: Keep your finances as consistent as possible during the mortgage process and contact AZ Financial before making a significant financial change.

Finding the right home is exciting, but shopping before understanding your financing can create unnecessary surprises.

A mortgage pre-approval can help you understand your potential price range, estimated financing options, and documentation requirements before you make an offer. It can also demonstrate to sellers that you've taken steps toward obtaining financing.

How to avoid this mistake: Get your mortgage financing reviewed before you begin seriously shopping for a home. AZ Financial can review your qualifications, discuss available loan programs, and help you prepare for the homebuying process.