For most people, purchasing a home is one of the most significant financial investments they will make. Aside from the large financial investment, the personal investment can be overwhelming as buyers try to make all the right choices to avoid any mishaps down the road. One step in purchasing a home that can be extra daunting is the process of taking out a mortgage loan. When choosing a mortgage loan, if you make a bad choice, you may be setting yourself up for foreclosure in the future.
Daryl L. Jones of The Law Offices of Daryl L. Jones, P.A has extensive experience helping clients navigate the process of taking out a mortgage loan in Florida. You must know about the most common lender errors that have led to Florida foreclosures.
The 4 Most Common Lender Errors in Florida Foreclosures
Being aware of common mortgage errors will help you feel less stressed during the home buying process, and could also potentially save you a lot of money down the road. Some of the most common lender errors that have led to Florida foreclosures include:
Choosing the First Lender You Find
It is always important to shop around to find the best deal that suits your budget and needs with any big purchase. The same can be said for a mortgage loan. Some buyers will choose the first lender they find just to get the process over with, but that prevents you from comparing different payment plan options and interest rates. When comparing lenders, you should consider the following:
- Closing costs
- The total cost of the loan
- If the loan is variable or fixed
- Is private mortgage insurance is required
Considering different lenders may take more time, but it can save you a lot of money in the long run.
Waiting Too Long to Address Credit Issues
When you decide you may want to buy a home, your credit should be addressed sooner rather than later. You should not wait until a short time before trying to purchase your home to pull your credit report.
This is because if you plan to take out a mortgage loan to pay for your home, you will likely get a better interest rate if you have a higher credit score. If you pull your credit report in advance, you may have time to build up your credit in time so that you can still get a better interest rate on your loan and not have to pay as much over time.
Switching Jobs before Your Loan Closes
Switching jobs is not always a bad thing when it comes to closing on a mortgage loan. This is especially true when you switch to a job with a higher paying salary. However, if you switch from a salaried job to self-employment before your loan closes, you may run into some issues.
This can be an issue for self-employed borrowers or employees who rely on commission or bonuses since they fall under different underwriting guidelines than those of salaried workers. To make things easier, you should wait until after you close on your loan to make any major changes to your employment status.
Not Including Necessary Information in Your Mortgage Application
The first step to getting preapproved for a loan is the mortgage application. If you choose to leave important information off of the application or misrepresent the information that you did include, you may hurt your chances of loan approval.
Contact a Florida Foreclosure Lawyer for Help
Choosing the right lender for your mortgage loan can be an overwhelming decision. However, if you do not put in the time and research needed to make the best decision, you may be facing foreclosure down the road. To help prevent this, contact a Florida foreclosure lawyer for help.
The Law Offices of Daryl L. Jones, P.A is a Florida real estate law firm with experience helping clients understand how to avoid foreclosure and what their options are if foreclosure is a possibility. Daryl L. Jones is passionate about providing clients with the knowledgeable and dedicated representation they deserve. To schedule a consultation, contact us here or call (305) 969-3602.