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SOURCE: The Federal Savings Bank
The Federal Savings Bank has found common mistakes people make when applying for a new loan.
Chicago, IL (PRWEB) February 05, 2013
The Federal Savings Bank suggests that veterans who are looking to take advantage of the housing market by applying for a VA home loan should be sure not to make the common mistakes of potential buyers.
Having good credit is important to successfully being able to purchase a home and transition from your previous residence. With this considered, Americans should make sure that they check their credit before taking any steps toward purchasing a new home.
If you've been responsible with your credit all your life and believe there couldn't possibly be anything that would keep you from securing a loan, think again. Even if you believe you have the best credit, there could be mistakes that were made on your credit score by the three main bureaus, causing your score to possibly drop from a 750 to a 650. Veterans should check their credit at least once a year to make sure there are no discrepancies that could keep them from securing a home loan.
Avoiding a number of credit card purchases
Many Americans are under the impression that they can use just one credit card for a large number of purchases and just pay off the sum every month, but lenders actually look at this as being a negative.
Economists suggests never going over 50 percent of your available credit card limit. In fact, playing it safe by never going over 30 percent of your total balance is best, as lenders look to make sure you're making wise financial decisions as a significant factor in whether you qualify for a mortgage.
Another mistake that could be made by veterans looking to purchase a home is failing to look at the total housing payment. Since mortgage payments include principal, interest, taxes and insurance, potential homeowners are unaware of the other charges that might come into play when they consider their overall budget. Properly planning before fully pursuing a house could cut down on a lot of disappointment if you're unable to afford all your expenses at the end of the month.
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