3 Mortgage Mistakes to Avoid

If you’re buying a farm or house for sale in Northern Florida, these are three mortgage mistakes to avoid.

These are three big mortgage mistakes you can avoid if you’re buying a home for sale in Lake City or any of the surrounding communities:

Waiting until you’ve saved up 20%
Talking to only one lender
Not getting preapproved

Waiting Until You’ve Saved 20%

You don’t necessarily need a 20 percent down payment to buy a home. In fact, you can get a home loan with as little as 3 percent down. However, the more you save, the better – if you have less than 20 percent down, you’ll have to pay for private mortgage insurance, or PMI. The only exception is if you’re using a VA loan, which doesn’t require any down payment at all, and lenders can’t make you buy PMI.

The less you put down, the more you have to borrow from the bank – and the higher your monthly mortgage payments will be.

Talking to Only One Lender

About half of all borrowers only talk to one lender; they don’t bother to mortgage-rate shop. That’s abig mistake, though, because rates vary by lender. A recent study by the Consumer Financial Protection Bureau says that rates can vary by as much as 0.5 percent, which can translate into tens of thousands over time.

Not Getting Preapproved

You need a preapproval letter before you start house-hunting. It’s important for two big reasons. One, it lets you know just how much house you can afford, and two, it’s going to come in handy when you find your dream home and want to make an offer right away. A seller is more likely to take your offer seriously if he or she knows you can get the financing you need to buy the home.

Are You Buying a Home for Sale in Lake City?

If you’re moving to Lake City, we can help you find the perfect place to live. Call us at 386-243-0124 to tell us what you want from your home and we will begin searching right away.

In the meantime, check out the most popular Lake City home searches by exploring the links below.

3 Mortgage Mistakes to Avoid