💰Home financing mistakes (and how to avoid them)

 Buying a home is a big milestone, but it’s easy to make some common mistakes that can make the process harder and more expensive. To help you avoid unnecessary stress, here are 7 key mistakes to avoid when financing your home:

1. Not Checking Your Credit Score Early
Surprises on your credit report can delay or derail your mortgage. Check your score at least six months in advance to fix any issues and boost your score for better rates.

2. Not Shopping Around for Lenders
Mortgage rates and fees can vary a lot. Compare quotes from at least three lenders to find the best deal—and don’t forget to negotiate!

3. Skipping Pre-Approval
Being pre-approved strengthens your buying position and helps you focus on homes you can afford. Don't skip this step before you start house hunting!

4. Failing to Budget for All Costs

Remember, it's not just about the mortgage. 

5. Overextending Your Budget
Don’t stretch yourself thin. Stick to the 28/36 rule: mortgage payments ≤ 28% of your income and total debt ≤ 36%. This ensures long-term financial stability.

6. Making Big Financial Changes Before Closing
Avoid major financial moves like taking on new debt or quitting your job before closing on your home—these can affect your mortgage approval.

7. Ignoring Mortgage Terms and Fees
Understand all loan terms and fees before you sign anything. This includes interest rates, prepayment penalties, and other hidden costs.

With the right preparation and by avoiding these mistakes, you can save money and reduce stress throughout the home-buying process. To ensure you get the best rates, compare quotes easily here.

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