Applying for a Home Loan takes more than just an application.

With all the great opportunities of homeownership in our new year and the anticipation of more Millennial buyers entering the market, there is no doubt that we will see an increase in home loan applications. The market has been flooded once again with direct lenders, mortgage brokers, local credit unions and banks all trying to put their application links in the consumers face. With social media revolutionizing the free marketing ad, you could probably find someone trying to get you to submit an application and get an automatic response in 5min from your smartphones.

As a loan consultant for the past 11yrs in Bakersfield California and the county of Kern, I've helped and brought understanding to clients that there is more to applying for a home loan than just submitting an application. Buying your first home or that first investment is definitely the American Dream but not at the expense of jeopardizing your comfortable living.

Here are 4 mistakes made when buying a home

1. Spending the maximum on housing (no budget)
2. Not getting pre-qualified early enough
3. Applying for Home Loan takes more than just an application
4. Choosing the wrong mortgage product

Now, I'm NOT saying that everyone who didn't budget or had low credit scores and was able to buy a home received a bad mortgage. Not all, but, I do have to say that in the last 2 years I've had more conversation with homeowners about refinancing to lower the payment because that so call great payment of last, is not so great today.

When sitting with your loan consultant there should always be a conversation about your short and long term plans. Your plans for the next 2-5 years can really change your financing plans and may be your dream home next to the golf course or in the prominent community might not be ideal for you then.

Here's a few short term plans (under 5yrs) to consider

• Buying a new car (new average car payment $477)
• Having a baby (18-20 years of expenses, average payment, unknown)
• Returning back to college to finish your BA or Masters
• Job change or industry change
• Opening that business you being planning

Long term plans (5-10 years from now) to consider

• Kids going to college (Average 4 year tuition $35,000 per child)
• Relocation to a new city or state
• Build a Retirement Savings
• Retiring from work

There so much more I can add but I think you get the idea.

I hope this post has help and it's brought knowledge and understanding. If you would like to contact me directly for a consultation please email me at daniel.estrada@nafinc or 661-472-6088.