The number one mistake you don’t want to make when getting a mortgage

It may seem for some families like purchasing a refinancing a house is an endless amount of paperwork. To most people the mortgage process probably is that complex. Here’s what you need to know when it comes time to getting a mortgage and the number one thing that you want to make sure to avoid doing…

Mortgage companies in America are under a very tight microscope for what they will allow and what they will not allow with regards to your cash, credit and income. Most lenders have a process. Attempting to circumnavigate that process, providing half the documentation, providing less than what is requested or not letting the lender obtain a copy of your credit report is a recipe for failure.

When it comes time to getting a loan after you’ve provided your application and your loan is in process the number one thing you want to avoid doing is being uncooperative. Being resistant to providing documentation, trying to provide documentation in lieu of what is asked for, or worse going unresponsive is just not going to make for a harmonious transaction for you or the agents involved, same goes for a refinance. Everybody is impacted if you don’t fulfill your end of the bargain in providing what’s needed to the lender for the loan that you are applying for.

This means you must be willing to surrender and give up control. Unfortunately, there’s no easy way to say it. When you’re applying for a mortgage loan the lender is the one deciding whether they’re going to lend you $500,000 for example or whatever your desired loan amount is. That means if you want the money that you’ve requested to borrow you have to play ball by their rules there’s no ands or buts about it it’s just what it is.

It would be advisable to get any needed items to the lender first, then ask question. Refusing to provide documentation lender wants to help you, having half an hour conversation about why the bank needs a certain piece of documentation will slow down your loan process. It is much faster to provide the documentation to the lender needs keeping your file moving and following up with “why” later.

Being resistant to providing documentation to the lender in a timely manner ultimately is doing yourself an injustice because it might mean you having to pay for a rate lock extension or a purchase contract. Do yourself a financial favor and always make sure when the lender requests more documentation, just provide it. “Ok, what else can I provide you” is the magic words that will make your process much easier.

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When buying a home, it’s natural to want the lowest mortgage rate possible. But sometimes, chasing a slightly better rate from another lender—especially after your offer has already been accepted—can backfire in a big way. Let’s walk through a real-world scenario. You’ve got an offer accepted on a house. You’re working with a lender who has you approved, documents in underwriting, and a 21-day close of escrow in place. Everything is moving forward. Then you hear from another lender offering a rate that’s 0.25% lower, with slightly better closing costs. It’s tempting. But before you make a jump, here’s what you need to consider. Switching Lenders Comes with Time Costs When you pivot to a new lender mid-contract, they’ll need to: Re-underwrite your entire loan, Order a new appraisal, Disclose and sign new loan documents, Submit the file for final loan approval, Schedule and fund closing—all over again. This doesn’t happen overnight. Even in ideal circumstances, the new lender is likely going to need at least 25–30 days to close. If you’re in a fast-moving or competitive market, this is a real problem. Most sellers won’t grant a contract extension just because you’re switching lenders. So, what happens next? A Contract Extension Can Jeopardize Your Deal Asking for a contract extension means the seller must agree to delay closing. But that delay introduces risk—especially if the seller has backup offers or simply wants certainty. They may not grant the extension. Or worse, they could cancel the deal outright and take another buyer’s offer. Even if the seller agrees to extend, your earnest money and negotiation power could take a hit. And for what? A slightly lower rate that might save you $50 to $75 a month? Mortgage Rates Aren’t as Far Apart as You Think Here’s the truth: all mortgage lenders get their money from the same place—the bond market. The pricing differences between lenders usually range from 0.125% to 0.25% in rate on any given day. If one lender seems to be offering dramatically better pricing, the first thing you should ask is: How? Head over to FreddieMac.com and check the average 30-year fixed rate posted weekly. This is one of the most reliable benchmarks for where rates truly stand in the market. If a lender is quoting you a rate that’s well below that average, ask for the details: Are they charging extra points? Is this a teaser rate with a prepayment penalty? Is it based on a different loan product or risky structure? Often, what sounds “too good to be true”… is. Consider the Bigger Picture Think long-term. If you’re financing $600,000, a 0.25% lower rate may reduce your payment by roughly $75/month. But what if you lose the house and have to start over? That monthly savings doesn’t mean much if you’re outbid on your dream home or lose your deposit. Also, remember: you’re not going to keep this rate forever. Today’s homebuyers typically refinance when rates drop by about 0.75% or more. So if rates fall within the next year or two, you’ll likely be refinancing anyway. Instead of paying extra points now or risking the entire deal for a minor monthly savings, it may be better to accept a slightly higher rate—knowing you’ll refinance when the time is right. The Real Risk Isn’t the Rate—It’s the Delay When shopping for a home loan, don’t just ask, “What’s your rate?” Ask: Can you close on time? Is this rate sustainable or based on hidden costs? Will switching lenders delay or jeopardize my contract? A home purchase contract is a binding agreement between you and the seller to perform within a set timeframe. If you can’t meet those dates because you're chasing a slightly better rate elsewhere, you may want to reconsider if now is the right time to buy. Final Thoughts Yes, interest rates matter. But execution matters more. Before making a switch mid-transaction, talk to your lender. Have an honest conversation about pricing, timelines, and strategy. You might find that staying the course, securing the house, and planning to refinance later offers a better path to financial security. Want to Know Your Options? Let’s compare rates and strategies the smart way—without risking your dream home. 👉 Click here to get a custom rate quote today.

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