Home A Loan Mortgage, LLC
(404) 889-8411

How to Dodge the Top 3 Mortgage Blunders in Today’s Market

Don't fall for these 3 common mistakes in today's competitive market!
Sep 11, 2024

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.

1. Assuming Mortgage Rates Will Drop Exactly with the Fed

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.

2. Waiting Too Long for Rates to Drop Further

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.

3. Overlooking Your Credit Score

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.

The Bottom Line

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.

PRIVACY POLICY

Customer service is very important to us. As we continue to improve and expand our services, we recognize our customers' need and desire to preserve their privacy and confidentiality. Safeguarding our customers' privacy is also very important to us. We have adopted standards that help maintain and preserve the confidentiality of customers' nonpublic personal information. The following Statement affirms our continued efforts to safeguard customer information.

Information We Collect

We gather nonpublic personal information about our customers as may be necessary to conduct business with our customers. We collect nonpublic personal information about you from the following sources:

  1. Information we receive from you on applications or other forms, over the telephone or in face-to-face meetings, and via the Internet. Examples of information we receive from you include your name, address, telephone number, social security number, credit history and other financial information.
  2. Information about your transactions with us or others. Examples of information relating to your transactions include payment histories, account balances and account activity.
  3. Information we receive from a consumer reporting agency. Examples of information from consumer reporting agencies include your credit score, credit reports and other information relating to your creditworthiness.
  4. From employers and others to verify information you have given to us. Examples of information provided by employers and others include verifications of employment, income or deposits.

Information We Disclose

Your personal information will only be retained for the purpose of providing you with our response to your query and will not be made available to any third party except as necessary to be disclosed to any related entity for the purpose intended or as required to be disclosed under law.

By submitting data on our website, the visitor is providing explicit consent to transmission of data collected on the website.

We treat data as confidential within our firm and require a strict adherence of all our employees to data protection and our confidentiality policies.

All visitors, however, should be aware that our website may contain links to other sites that are not governed by this or any other privacy statement.

We reserve the right to amend (that is, add to, delete or change) the terms of this Privacy Statement from time to time.