Looking to buy a home? Many home buyers make these 10 common mistakes during the home buying process that could jeopardize their loan.;
No one buys a home hoping to get behind on payments and have the bankforeclose on it. Here are a few tips to avoid this problem altogether, andwhat to do if it does occur.Don’t set yourself up for failureThere are two main ways to avoid foreclosure:
• Don’t put yourself in a situation where you won’t be able toafford your mortgage.
Know how much you can really afford beforeyou start shopping for a home and stick to that price range. Often,people over-extend themselves financially when in reality they don’t andwon’t have the means to pay their mortgage payment. Just because themortgage lender approves you for a loan at a certain amount doesn’tmean you can actually afford the payments on that loan.
• Understand your loan.
Many people get into trouble because theydon’t understand their responsibilities regarding their home loan. Thereare many types of loans where the payments for the first year or firstfew years are much lower than the amount you will pay in the followingyears. Talk with your lender about various loans and make sure youunderstand how much your payment will be at the beginning as well aswhat your payment might be in the future.
What to do if you think you’re heading toward foreclosureDo not be embarrassed.
Instead, contact your lender as soon as you’reaware that your payment will be late. Also, never ignore your lender’s phonecalls or letters. If you act uninterested in the fate of your home, your lenderwill be less willing to work with you in remedying the problem.
If you don’t want to speak to your lender first, you can contact a HUDapprovedcounseling agency that will work with you and your lender tonegotiate a repayment plan. You can call 800/569-4287 for the counselingagency nearest you.
Also, KeepMyTexasHome.org is a comprehensive resource for Texashomeowners who are, or who may become, behind on their mortgages.This site outlines the foreclosure process in Texas and provides bestpracticesteps and other resources for Texans who may face foreclosure.On KeepMyTexasHome.org, you can search an online database of TexasREALTORS® who’ve undergone specialized training to help homeownersavoid foreclosure.
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