Shopping for and touring potential homes is definitely the fun part of the home-buying process. So what is the not-so-fun part? Applying for the mortgage loan.

Here are two mistakes to avoid to ensure that you love the terms of your mortgage as much as you love your hew home.

Number one. Don’t shop for your home first: Shopping around for the best mortgage rate should be step one in the home buying process. It may even be a good idea to talk to a mortgage broker a full year before you plan or need to buy. Why? If there are any issues with your credit or debts, a mortgage broker can identify them and with enough time, you can take care of them before you have to apply for a loan. Talking to a mortgage broker in advance will give you time to get your affairs in order to qualify for the best rate, could save you thousands of dollars in the long run, and you won’t feel rushed to accept an unattractive loan because you’re worried you’ll miss out on your dream home.

Number two. Stay within your real budget: There is often a big difference between what a lender says you can afford and what you can actually afford. Your debt-to-income ratio, or how much you spend vs. how much you make, doesn’t include the money you spend on hobbies, or the cost of commuting to work, or maintenance and utility costs. If you like eating out more than cooking at home, your food bill may be higher. You have to really sit down and examine your spending habits before committing to the loan amount the lender is offering. You won’t enjoy your home nearly as much if it’s eating into your favorite hobbies.

About the author

The Waikele Group

The Waikele Group

Your Trusted Real Estate Advisors

Your New Home In Hawaii® Looking for your first home, retirement home, or something in between, visit THE WAIKELE GROUP for more information on buying or selling your home. Lester A. Salazar, RA, GRI, MRP, e-PRO® Born and raised in Hawaii, Lester grew up in the shadows of Diamond Head, has lived in neighborhoods like Waipahu, Nuuanu, Salt Lake, Newtown, Mililani Mauka and now calls Wahiawa home. Trust, Leadership, and Organization A licensed Real Estate Agent in the State of Hawaii, specializing in Oahu residential properties, Lester has 30 years of experience in the IT industry, working for companies like Computerland, City Bank, The Queen's Medical Center, Xerox Business Services and others. IT is an extremely demanding field and has given Lester the skills to problem solve and negotiate in a variety of situations while maintaining a calm, cool, collected demeanor. The skills learned in the corporate world transfer nicely into Real Estate. Using Technology to Make Life Easier Establishing lasting business relationships and providing excellent client satisfaction are essential parts of his business. With over 90% of buyers now using the internet to begin their search, Lester specializes in social media and real estate websites to promote and attract business. Internet presence is very important to Lester, as he has nurtured his online presence for over a decade. Digital is the future, and Lester provides a seamless experience eliminating time-consuming documents. Contracts are created online, and signatures are secured online in real-time, allowing unparalleled flexibility and timely delivery of contracts. Buying or Selling, Lester is your trusted local Wahiawa and Central Oahu agent. Get your FREE home market valuation report. Visit Your Oahu Home Value. Lester is full time, full-service real estate agent and one of the top agents in his office. Lester is a technology trainer and provides classes for other agents. He is a graduate of the Realtor Institute (GRI), a Military Relocation Professional (MRP), and e-PRO® Specialist and is SmartHome certified. Lester is also a certified drone pilot and utilizes his skills as a remote pilot and photographer to provide professional photography services to his clients. Lester is also an accomplished real estate photographer, and certified drone pilot.

More posts

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.