Getting a mortgage is one of those things that everyone seems to have quite a bit of advice about. While people surely have good intentions, it’s not always best to take the buying advice of everyone you meet. Below, you’ll find the wrong kind of mortgage advice and why you should think twice about it. 

Pre-Approvals Are Pointless

Getting pre-approved for a mortgage can give you an upper hand when it comes to putting in offers on a home. Even though a pre-approval isn’t a guarantee, it’s a good step. It shows that you’re a serious buyer and locks you in with a lender so they can process your paperwork a bit more quickly when you do want to put an offer in on a home. 

Use Your Own Bank

While your own bank may be a good place to start when it comes to buying a home, you don’t need to get your mortgage from the place where you already have an account. You need to compare rates at different banks to make sure you’re getting the best possible deal on a mortgage. You’ll also want to check on the mortgage requirements for each bank. Different banks have different standards based on down payment, credit scores and more. You’ll want to get your mortgage from the bank that’s right for you and your own situation. 

The Lowest Interest Rate Is Best

While this could be true, it’s not set in stone. A bank with a slightly higher interest rate could offer you some benefits that you otherwise might not have. If you have a lower credit score, or less downpayment money, a bank offering a higher interest rate could be a better option for you. Low interest rates can have some fine print that might end up costing you a lot more in the long term. Do your research before you sign on with any kind of bank for your mortgage. 

Borrow The Maximum

Just because you’re approved for a certain amount of mortgage doesn’t mean that you need to max out your budget. It’s always best to have a bit of a financial cushion for yourself to keep your budget from being extremely tight. When life throws you a curveball like unexpected medical bills or a job loss, you’ll be glad that you didn’t strain your budget to the end of your means. Even though the bigger, nicer house always looks more attractive, you’re better off financially if you’re sensible about the amount of money you borrow to buy a home.

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Thinking of buying a home in the near future? You’re going to need a preapproval. This tells real estate agents that you’re serious about the home-buying process, and it alerts sellers that you’re a solid, low-risk candidate. Preapprovals aren’t always easy to score, however. And if you’re someone who’s had a few credit issues in the past, you may need to improve your credit score before your dream of home-ownership becomes reality. 

Here’s a checklist of best practices for prepping your credit to gain a preapproval:

Check Your Credit Reports

Before you ever approach a lender for a home loan preapproval, make sure you know what’s on your credit reports. You’re entitled to one free credit report each year from each of the three different reporting agencies:

Order credit reports for yourself and for anyone who will be a co-applicant on your home loan, and then scour your reports for inaccuracies. 

File Immediate Disputes Over Inaccuracies

Any discrepancies you find should be reported immediately. It’s an easy process of reporting the issue to the credit bureau and waiting while they go back to the creditor to verify what you’ve claimed. In most instances, the inaccuracy will be removed within a week or two, though you may have to produce receipts as proof of payment. 

Contact Creditors to Offer Settlements

Make a list of old, unpaid debts that are valid and set aside the funds to pay them off, one by one. If you have cash-in-hand, call creditors and ask them to settle for a portion of the balance in cash. Some may be willing to work with you, others may not. But it never hurts to ask. 

Pay Current Bills On Time

Stay current on existing accounts. Make sure everything is paid on time, from credit cards to car payments, to ensure you don’t lose points on your overall score while you’re working toward credit restoration. 

Pay Down Your Debt-to-Income Ratio

Your debt-to-income ratio is an indicator of how responsibly you use your credit. The lower your ratio, the easier it will be to obtain a preapproval. Pay down big balances. The more credit you’re able to free up, the more attractive you’ll look to potential lenders. Prepping your credit to gain a preapproval is surprisingly easy, but it requires the funds necessary to pay off outstanding debts and to pay down current balances. 

Start early if you suspect there are items on your credit report that require fixing, and be patient as things circle back around. Credit repair is not an overnight fix, but with steady progress, it won’t be long until you have a preapproval for your new dream home.

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Upton, MA:

This Single-Family in Upton, MA recently sold for $293,000.
This is a Colonial style home and features 6 total rooms, 1 full bath, 3 bedrooms, 0.32 acres, and was sold by
Chuck Joseph – RE/MAX Executive Realty

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Want to transform an ordinary garage sale into a successful one? Sell your electronics, and you can cut down on clutter, earn extra cash and speed up the home selling process.

If you plan to list your home in the near future, a garage sale offers a great opportunity to remove excess items from your house. Meanwhile, there are many electronics that you can sell to help stir up interest in your garage sale, and these include:

1. TV

You may be in no hurry to get rid of your big-screen TV. However, it is important to remember the time and energy it may take to move your TV from one home to another.

Ultimately, you may need to hire a moving company if you want to guarantee your TV can make it to a new address. And if you decide to move your TV on your own, you may struggle to do so due to its size and weight.

If you intend to sell your TV during your garage sale, you should learn as much as possible about this device. That way, you can establish a competitive price for your TV.

Also, if you have a TV remote or DVD player that complements your TV, you may want to consider selling these items at your garage sale.

2. Video Game Console

After spending many hours playing video games, now may prove to be the perfect time to sell your favorite video game console.

Many garage sale shoppers search far and wide for video game consoles, which means you may be able to generate plenty of interest in your video game system. In addition, if you own a “retro” video game console, you may be able to turn a significant profit from it.

If you sell a video game console during your yard sale, ensure the device works properly and includes all associated cables and wires. Furthermore, perform online research to understand the true value of your video game console to guarantee you can price it competitively.

3. Computer

An old computer may take up space in your house. Fortunately, a garage sale makes it simple to get rid of this device before you sell your residence.

When it comes to selling a computer, it is always better to err on the side of caution. Thus, you should clear your computer’s hard drive to remove any sensitive information from the device altogether.

Moreover, if you own a printer, mouse or other items that complement your computer, it may be worthwhile to sell them as part of a package deal.

Selling your electronics at a garage sale may be one of the first steps to eliminate excess items from your residence prior to adding your home to the real estate market.

Lastly, if you need extra help with selling your home, you should collaborate with a real estate agent. By doing so, you can seamlessly navigate the home selling cycle and boost your chances of a profitable home sale.

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