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    Edmundo Daco Jr.

    When purchasing a property, a home loan is one of the most popular financing product  that people get. Although there  are a lot of advices available in the internet about shopping for home loan, many still do the same mistakes that lead them to not so great home loan deals. If your are going to shop for a home loan, make sure to avoid the following mistakes:

    1. Not checking the credit score - Credit score is very important when applying for any type of loan in the US, including home loans. It will be a sin not to check your credit score first before sending applications. Your credit score will mostly determine if you will be declined of the loan, will require a cosigner and/or collateral, or will give you a  high interest rate. If you check your credit score first and you have a bad credit score, you'll have the opportunity to improve it first before shopping for a home loan.

    2. Not knowing the types of home loans - there are many types of home loans out there, from variable rate and fixed-rate loans, equity and lines of credit loans, and other non-conforming loans. One of them might be the most appropriate for your financial situation. So it's good to know each one of them you can decide which type of home loan to get.

    3. Not shopping around enough for the best deal - if you are going to shop for home loans, then you might as well do it properly. Go around the town and go to as many lenders and banks as you can until you find the best deal you can have. Don't just settle for your trusted lender or bank because you'll never know if there are better deals out there unless you inquire with other lenders.

    4. Not determining what you can afford - When shopping for a home loan, make sure that you know how much you can pa for the loan monthly. Some people go overboard and end up getting more debt because they get much higher loan amount than what they can pay for. Compute your monthly income, savings, other debts and monthly expenses to find out how much you have left per month that you can allot for monthly home loan repayments.

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