House shopping in Arizona can be a roller coaster ride – from choosing the best Phoenix neighborhood, to selecting the best home for your family. But throughout the entire Arizona house-hunting process, nothing can seem more daunting than the mortgage process.
At Scout Mortgage, we work with our Arizona house-shoppers to make the mortgage process as easy and helpful as possible. From providing a complimentary pre-qualification to shopping more than 40 lending intuitions for the best rate, we strive to make your mortgage process one of the best parts of the house-hunting process.
To make taking out a new home mortgage a better experience, we recommend you avoid the following common mistakes:
Taking out a mortgage you can’t afford
Often time homebuyers don’t take into account the total cost of having a mortgage. This includes the principal, interest, insurance and taxes. A common rule-of-thumb is the total cost of the mortgage should not exceed 30% of the applicants’ monthly gross income.
House-shopping without pre-qualifying
House hunting without a pre-qualification from Scout Mortgage, is shopping blindly. It is sad when a couple has fallen in love with a home only to realize it is out of their budget. Click here to start your Scout Mortgage Pre-Qualification.
Going to your bank or credit union for your home loan
Scout Mortgage has relationships with more than 40 different lending institutions. Not only will Scout Mortgage identify the rates at your bank but they will also show you other lending intuitions. Allowing you to secure the best loan option at the lowest rate. You focus on the house shopping – Scout Mortgage will do the loan shopping.
Not taking into account the additional fees for closing costs
Typically closing costs range from 2% – 7% of the total loan amount. These fees include attorney fees, title fees, insurance, taxes, points and other related charges. During the Arizona real estate boom it was very common for the seller to cover the homebuyer’s closing costs. Now, Arizona homebuyers may be expected to cover these costs at signing. If you are not prepared for these costs, it can delay closing.
Signing a loan document without reading it
Often times, a mortgage is the single largest financial loan a person will take on. That being the case, it is shocking that more Arizona borrowers don’t take the time to read through the mortgage documents. At Scout Mortgage we encourage our borrowers to carefully read through the mortgage documents. If there is something we can explain, we’re more than happy to do so.
For more information about Scout Mortgage, visit our Contact Us Page, or better yet, give us a call at 480-607-7906 or toll-free at 1-877-428-4344.