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The 5 Most Common Mistakes Homeowners Make


Chances are your home is your most valuable asset. You don't want to make a mistake that may cost you thousands of dollars or potentially put your family's home at risk. Close Your Own Loan has compiled five of the most common mistakes homeowners make while shopping for a new home loan. Please take a minute or two to learn from their mistakes so you do not repeat them.


1) Keep it private

Identity theft is the fastest growing crime in the United States. Many Loan Officers, or criminals posing as Loan Officers, will request your personal information including your social security number and date of birth up front. Do not give it to them. Any reputable company will be able to give you a rate and payment quote up front before you give them your personal information. By keeping your personal information secure you will accomplish two things:

a) You will keep your credit score high by avoiding unnecessary credit inquiries.

b) You will keep identity thieves far away from your personal information.


2) Use YOUR judgment

A recent survey of homeowners in foreclosure with adjustable rate mortgages revealed that 85% of them stated they would not have taken the adjustable rate mortgage had they not been talked into it by a Loan Officer. Often a Loan Officer will try to talk you into an exotic adjustable rate mortgage simply because it pays a higher commission. Do not let their greed determine your next home loan. Explore all of your different loan options yourself in an environment free from sales pressure.


3) Ring, ring, ring...

Have you ever made the mistake of applying on one of these "get multiple quotes from different lenders" websites? I bet you were surprised when they sold your information to dozens of different mortgage brokers who then bombarded you with phone calls for weeks trying to talk you into refinancing with them. Is that what you really want when you go online looking at home loan options? If you wanted to talk to someone on the phone, wouldn't you have called them instead of going online? Don't fall prey to these information brokers. View your rate and payment savings here and Close Your Own Loan.


4) Up front fees

Some mortgage companies will ask you to pay a credit report fee, application fee, or rate lock in fee up front. Any reputable mortgage company will only charge closing costs once the loan has closed. As a matter of fact, Magnolia Bank doesn't charge a credit report fee, application fee, or rate lock in fee ever!


5) The guessing game

Interest rates fluctuate daily. Many homeowners will see their new rate and payment and decide to wait hoping that interest rates will drop. While you might get lucky and guess correctly, can you really afford to gamble with your family's home? If the new home loan payment offers substantial savings over your current total payment situation, don't be afraid to reserve your rate and lock in your savings. Trying to time the market to save an extra .125% in interest is simply not worth the gamble if rates go higher.


We hope you will find this information helpful in avoiding the pitfalls that those before you have fallen victim to. Please feel free to explore our Interest Rate Guide to learn more ways to lower your rate, improve your credit score and Close Your Own Loan.


Click Get Rates to get your instant online mortgage quote.


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Would you prefer to speak with a Loan Originator over the telephone?  Please call us directly at   1-800-276-CYOL(2965) and choose option 1.  Or, click here to have one of our experienced representatives contact you directly.