Mortgage rates just hit their lowest point since Spring 2023. Perfect timing to lock in a deal, right? Maybe. But rush in without a plan, and you could find yourself paying way more than you should—or worse, not getting the loan at all.
Buying a home is one of the biggest financial moves you’ll ever make. So you can’t afford to get it wrong. Ready to secure the right mortgage? Start by avoiding these all-too-common mistakes that can cost you in Orange County’s competitive market.
1. Ignoring Your Credit Score
A low rate means nothing if your credit score’s not up to par. Lenders are watching, and so is your score. In Orange County, where home prices can climb, having good credit gives you leverage. The higher, the better. Check it early. Boost it if you can. Why? Better credit = better deals. Simple.
2. Skipping the Pre-Approval
Want an edge in Orange County’s fast-paced market? Get pre-approved. It tells sellers you’re serious and gives you a clearer view of your budget. No guessing games. When you know what you qualify for, you can make a move quickly. Plus, The DeBlis Group, a local expert, will tell you this: pre-approved buyers get better deals.
3. Opening New Credit During the Mortgage Process
Big mistake. That new car? Those flashy credit cards? Put them on hold. Lenders see that and might rethink your reliability. You’re in mortgage mode—act like it. Every financial move counts, especially when rates drop and you’re racing to secure the best offer.
4. Overestimating How Much You Can Afford
Orange County’s dream homes can tempt anyone. But don’t stretch your budget. Your mortgage payment? It’s more than just the loan. There’s insurance, taxes, HOA fees, and maintenance. Get real about the numbers, or you’ll regret it. Use a mortgage calculator, but better yet, talk to experts like The DeBlis Group. They know the ins and outs of local homeownership costs.
5. Choosing the First Lender You Find
Big mistake. Don’t just settle for the first mortgage deal thrown your way. Shop around. Orange County has no shortage of lenders, but not all of them are created equal. The difference between a 0.25% rate change can cost you tens of thousands over the loan’s life. So, why rush? Take your time. Compare offers. The DeBlis Group can guide you.
6. Ignoring the APR
Sure, that rate looks good on paper. But what about the APR? Many Orange County buyers make the mistake of only eyeing the interest rate. The APR, though, shows the real cost, factoring in fees, closing costs, and extras. Pay attention. It’s the only way to compare offers accurately. Don’t fall for a low rate if the APR’s a different story.
7. Forgetting About Homeownership Costs
It’s not just about the mortgage. Orange County living isn’t cheap. From utilities to repairs, costs add up fast. A larger house means bigger bills—plain and simple. Be smart. Don’t max out your loan approval, because when these extra costs hit, you’ll feel it.
8. Not Mortgage Shopping with a Purpose
You’ve got a window—14-45 days, tops—to shop around without damaging your credit. Don’t waste it. Rates fluctuate, so when you find one that fits, lock it in. The DeBlis Group knows Orange County rates can be unpredictable. Act fast, but with purpose.
9. Scrimping on the Down Payment
Sure, a low down payment might seem attractive, but think long-term. The less you put down, the more you’ll pay in the end. In a high-cost area like Orange County, private mortgage insurance (PMI) can be a significant expense. And the smaller the down payment, the longer it’ll take to gain equity.
10. Not Checking for Prepayment Penalties
Paying off a mortgage early sounds like a dream, right? Not always. Some loans come with prepayment penalties, especially conventional ones. It’s a detail many Orange County homebuyers overlook. Double-check your terms. You don’t want to celebrate paying off your loan, only to get hit with unexpected fees.
Don’t Get Stuck with the Wrong Mortgage
So, should you shop around for a mortgage in Orange County? Absolutely. A slight rate change can add up to thousands over the life of the loan. The DeBlis Group knows the local market and can help you avoid these costly mistakes. Get it right, and you’ll enjoy your new home for years to come.
Ready to make your move? Contact The DeBlis Group today, and let’s get you a deal you can live with.
Commentaires