When buying a home, securing the best mortgage rate is key to saving money over the long haul. But in the rush to lock in a rate, many homebuyers make common mistakes that can cost them more than they expect.
Avoiding these pitfalls can help ensure you get the best deal possible. Here are three critical mortgage mistakes to avoid.
It’s easy to think that when the Federal Reserve cuts interest rates, mortgage rates will fall by the same amount. While it's true that mortgage rates generally follow the direction of the Fed's actions, they don't always move in lockstep. If you’re waiting for a specific Fed rate drop before applying, know that the difference might not be as dramatic as you hope.
Yes, mortgage rates may continue to fall in the future, but waiting for the perfect time could backfire. If more buyers enter the market once rates decrease, the added competition can drive up home prices. This surge in demand could make it harder to find an affordable property, wiping out any savings you’d get from a slightly lower mortgage rate.
Instead of trying to time the market perfectly, focus on what you can afford now and lock in a deal that works with your current budget.
Your credit score plays a huge role in determining the mortgage rate you're offered. Many homebuyers get so caught up in waiting for rates to fall that they overlook how much improving their credit score could save them. A small bump in your credit score can lower your rate significantly and help you qualify for better loan terms. Before applying, take time to review your credit report, pay down debt, and address any errors to boost your score.
This simple step could mean the difference between a higher or lower mortgage payment.
Navigating the mortgage process can be tricky, especially with fluctuating rates and home prices. But by avoiding these common mistakes, you can set yourself up for success and secure a mortgage that fits your needs without the added stress of missing out on the best deal. Have more questions? Let's talk! Contact us today for personalized guidance.
We've been helping customers afford the home of their dreams for over 20+ years and we love what we do.
Company NMLS: #2038063
MA - Mortgage Broker lic #MB2038063
RI - Loan Broker lic #20214228LB
ME - Loan Broker lic #2038063
FL - Mortgage Broker lic #MBR6561
www.nmlsconsumeraccess.org
420 Scrabbletown Road Suite #B
North Kingstown, RI 02852
Phone: (508) 212.6063
gp@firstclassmtg.com
Powered By LenderHomePage.com
First Class Mortgage Company NMLS # 2038063 strives to ensure that its services are accessible to people with disabilities. First Class Mortgage Company NMLS # 2038063 has invested a significant amount of resources to help ensure that its website is made easier to use and more accessible for people with disabilities, with the strong belief that every person has the right to live with dignity, equality, comfort and independence.
First Class Mortgage Company NMLS # 2038063 makes available the UserWay Website Accessibility Widget that is powered by a dedicated accessibility server. The software allows myfirstclass.mortgage to improve its compliance with the Web Content Accessibility Guidelines (WCAG 2.1).
First Class Mortgage Company NMLS # 2038063 accessibility menu can be enabled by clicking the accessibility menu icon that appears on the corner on the page. After triggering the accessibility menu, please wait a moment for the accessibility menu to load in its entirety.
First Class Mortgage Company NMLS # 2038063 continues its efforts to constantly improve the accessibility of its site and services in the belief that it is our collective moral obligation to allow seamless, accessible and unhindered use also for those of us with disabilities.
Despite our efforts to make all pages and content on First Class Mortgage Company NMLS # 2038063 website fully accessible, some content may not have yet been fully adapted to the strictest accessibility standards. This may be a result of not having found or identified the most appropriate technological solution.
If you are experiencing difficulty with any content on First Class Mortgage Company NMLS # 2038063 website or require assistance with any part of our site, please contact us during normal business hours as detailed below and we will be happy to assist.
If you wish to report an accessibility issue, have any questions or need assistance, please contact us by sending an email to: gp@firstclassmtg.com