If you think that getting a mortgage loan is going to be quick and easy, then think again. Buying a house and getting a mortgage loan is not like buying a sofa or a TV, which you can do in a day. It would take some time and would mean a lot of trouble and many documents to be taken care of. It can be a complicated process.
Because of the complicated process, a first time home buyer is likely to commit mistakes when applying for a loan. To help you out here are some of the top mistakes made by those applying for mortgage loans.
Not Making Comparisons
One of the most common mistakes made when it comes to mortgage loans is not comparing the lenders and the services that they are providing. When you fail to do this you are missing out on a great deal. Different lenders would have different offers and you have to be aware of that difference.
Keep in mind that mortgage loans are not products that are standardized. Lenders can vary what they offer and those differences can mean a great deal to someone like you.
Not Checking Your Credit Standing
Like most other financial products, mortgage loans are dependent on your credit standing. If you have bad credit, the lenders would probably not give you approval. If you do get the loan then you can bet that the term isn’t that good or at least it leaves a lot to be desired.
Deciding to buy a house isn’t an instant decision that you would be making. The moment that you decide that you want to purchase a house you should see also spend some time in checking your credit standing as well. That would allow you to make any corrections to it if you find that your credit standing isn’t that good.
Forgetting Other Costs
Many home buyers tem to focus too much on the monthly payment for their mortgage. They tend to forget that there are other expenses involved when it comes to buying a house. That would include the taxes and home insurance. There are more expenses that you should know about. Forgetting about those expenses can be an expensive mistake on your part because that might result in you running short of cash for your monthly expenses.
Getting Adjustable Rate Loans
Some people opt for an adjustable rate mortgage because they sound like a great idea. In reality they might cause you a problem once the interest starts to be adjusted. The interest would surely rise and never go down. You can count on that so it is better to opt for a fixed rate mortgage and just refinance your loan when the right time comes.
No Getting Pre Approved
These days getting the pre-approval is now a must when you want to get a mortgage and buy a house. Sellers and agents would be looking for it as the main sign that you are really serious about the purchase.