5 Mistakes to Avoid When Applying for a Mortgage in Indiana

🏡 5 Mistakes to Avoid When Applying for a Mortgage in Indiana

Buying a home is one of the biggest financial decisions you’ll ever make. But small mistakes during the mortgage process can cost you thousands or even prevent loan approval. Avoid these five common mortgage mistakes to ensure a smooth homebuying journey.

❌ 1. Not Checking Your Credit Score Before Applying

Your credit score impacts your interest rate and loan approval. Before applying:
✅ Check your credit report for errors (Dispute any mistakes!)
✅ Pay down credit card balances to lower your debt-to-income ratio
✅ Avoid opening new lines of credit (No car loans, credit cards, or personal loans!)

📌 Tip: A score of 620+ is recommended for conventional loans, but FHA loans may accept lower scores.

💰 2. Not Saving Enough for the Down Payment & Closing Costs

While some loan programs offer low or no down payment, you’ll still need cash for:
✅ Closing costs (2-5% of the home price)
✅ Earnest money deposit (shows sellers you're serious)
✅ Moving expenses & home maintenance

📌 Tip: Check out Indiana Down Payment Assistance Programs to see if you qualify for help!

📉 3. Changing Jobs or Making Big Purchases Before Closing

Your lender re-checks your financials before closing—don’t make sudden changes!
🚫 Avoid switching jobs or quitting your job (Lenders want stable employment history)
🚫 Don’t finance a new car, furniture, or appliances (It can change your debt-to-income ratio)

📌 Tip: Wait until after closing to make big financial moves!

🏦 4. Skipping Mortgage Pre-Approval

Many homebuyers start house hunting without knowing their budget. Pre-approval helps by:
✅ Showing sellers you’re serious (especially in competitive markets)
✅ Helping you avoid houses out of your price range
✅ Locking in an interest rate before rates increase

📌 Tip: Get pre-approved with Verified Mortgage before shopping for homes!

📑 5. Not Comparing Mortgage Loan Options

Not all loans are created equal! Compare:
✅ Conventional Loans – Great for buyers with strong credit (3%-20% down)
✅ FHA Loans – Low down payment (3.5%) with flexible credit requirements
✅ VA Loans – 0% down for eligible veterans & military
✅ USDA Loans – 0% down for homes in rural Indiana areas

📌 Tip: Work with a mortgage expert to find the best loan for your situation!

🚀 Get Pre-Approved & Avoid Costly Mistakes!

Homebuying doesn’t have to be stressful—let Verified Mortgage help you avoid these common mistakes and secure the best mortgage for your needs.

📞 Call us at 317-650-8547
📩 Apply for a mortgage today: www.verifiedmortgage.com