5 Big Mortgage Mistakes to Avoid

SAN DIEGO, CA, May 06, 2014—Applying for a mortgage can be a daunting task. It takes many hours, lots of paperwork, and possibly a headache or two. Below are several mistakes to avoid when on the hunt for a mortgage.

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Not checking your credit. “This should be your first step in applying for a mortgage,” says Christian Van't Vlie, REALTOR® at CENTURY 21 Award. Check your score months before applying for a mortgage so you know where you stand, and have time to make any changes if necessary.

Not getting pre-approved. A mortgage pre-approval is one of the best things you can do to ease the home-buying process. During pre-approval, your bank checks your credit and examines your income, assets, and employment. “Before shopping for a home, get pre-approved,” advises Van't Vlie. “Many sellers won't take you seriously otherwise.”

Applying for new credit AND a new mortgage. “Do not apply for a new line of credit before or during the mortgage application process – it hints at financial instability, and you're seen as a greater risk,” says Van't Vlie.

Changing jobs. If you're thinking about switching jobs, then hold off on the mortgage application, or stick out your current position for longer. “While a change in the same field doesn't necessarily mean you will be rejected, a big change - like a brand new career - can be a red flag,” notes Van't Vlie.

Not seasoning your assets. Uncle John is giving you $10,000 to put toward your mortgage? Terrific. Make sure it's in your account months before you apply for a mortgage. New funds do not equate to financial stability, and your underwriter will catch on.

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For more information on obtaining a mortgage, please contact Christian Van't Vlie at christianvantvlie@century21award.com, (619) 356-1919, or www.sandiegoathome.com

For more real estate information, please contact CENTURY 21 Award at info@century21award.com, (800) 293-1657, or CENTURY 21 Award.