MORTGAGE MISTAKES TO AVOIDTOP 5 COMMON

MISTAKE 1 Getting pre-approved without sending your documentation

A pre-approval is proof that you are both willing and capable of buying a home and adds extra assurance to the seller that the sale won’t fall through. A real pre-approval requires documentation. If you were pre-approved by a lender that didn’t thoroughly review your financial documentation, something is not right.

At a minimum the following documents will need a review before pre-approval:

Tax returns and W2’s from the last two years Most recent pay stubs covering 30 days Most recent bank statements covering two months All current debts Full credit report

We will review your documents thoroughly and get you an accurate pre-approval that will impress the sellers.

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MISTAKE 2 Pursuing an interest rate that’s “too good to be true”

Lenders know that low interest rates draw the attention of would-be customers, so they often advertise the lowest rates they can get away with. The rate advertised is usually one that no one qualifies for, or you’ll pay thousands in fees to get a lower rate.

Another “too good to be true” technique lenders sometimes use is advertising a short-term adjustable rate mortgage (ARM) that may not be the best, most financially sound option for you.

There are so many different factors that make up your interest rate, and every situation is unique. So don’t focus on the interest rate; the lowest one may end up being the most expensive.

With our vast array of lending options and our experienced mortgage advisors, we will find the right loan option for you.

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MISTAKE 3 Picking the lowest rate instead of the right loan for you

It’s easy to focus on the loan option with the lowest interest rate, but you should wonder, “Is this the best option for me and my financial needs?” While the interest rate on a 15-year fixed mortgage is lower than a 30-year fixed, the payment is significantly more. Many people who get a 15-year fixed mortgage end up refinancing to a 30-year fixed because the payment stretched their finances too thin. This concept also applies to a short-term adjustable rate mortgage. For example, the interest rate on a 5-year ARM will initially be lower than a 30-year fixed rate loan, but beginning in year six (and every year for the remaining 25 years), the interest rate is subject to change, which could create an unaffordable payment.

It’s critical we work together to create a long-term financial plan that suits your specific needs.

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MISTAKE 4 Trying to time the market

Timing the housing market is just as difficult as trying to time the stock market. It is extremely rare that it will work, and you could lose time and money in the process.

Mortgage rates are based on mortgage-backed securities (MBS) that are just as volatile as the stock market; changing minute by minute, hour by hour.

It’s impossible to time perfectly as there are infinite factors affecting the market; from geopolitical events, to inflation, to durable goods orders. We follow the MBS market closely and can advise you on when it’s a good time to lock your interest rate.

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MISTAKE 5 You can do it yourself

The internet makes a lot of things easier to do on your own; with a mortgage, that is not the case. Buying a home is one of the most important ways to build wealth, and a mortgage is likely the largest debt you’ll ever have. When you’re dealing with hundreds of thousands of dollars, even a simple mistake can become very costly.

Speed, when it comes to important decisions, is rarely better than having a professional assess your entire financial picture and match you to the mortgage tailored to fit your needs. We can look at the big picture and over the life of the loan save you thousands of dollars. Getting a mortgage is not just about filling out a quick and easy application online; it’s critical to have a trusted advisor leading you, helping you to feel safe, secure, and comfortable with your decisions.

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THANK YOU FOR CHOOSINGThe Rodd Miller Group at Pacific Residential Mortgage

Pacific Residential Mortgage LLC., NMLS-1477, Equal Housing Lender. Credit on approval. Terms subject to change without notice. Not a commitment to lend. www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/1477.

team.miller@pacresmortgage.com | Office: 503-699-LOAN (5626) | Direct: 503-905-4931

Rodd Miller NMLS-37965

Sr. Mortgage Banker

Melissa Brewer NMLS- 1438304

Processor

Sonja Ferestad NMLS-210206

Loan Manager