Sometimes borrowers don’t do their homework. They often make easily avoidable mistakes while shopping for mortgage that results in paying more than they should, and in some cases extra cost is very high.
Common Mortgage Mistakes and Ways to avoid them
Comparing Multiple Lenders
It’s important to look for multiple options for mortgages so as to get better rates. Many times, it happens that large lenders and banks do not give best rates, which can be availed otherwise.
When the question of mortgage arises, usually borrowers turn to their broker, estate agent or lender. Though those are good options, but it has been found by research that borrowers can benefit from looking out for additional and objective information source like new sites and housing counsellors.
For example, you can have a look at Maureen Martin, a professional of mortgage specializing in all sorts of financing.
Look for Expert advise
Many borrowers seek to opinion of their friends and family members, but you need to understand that these can be an unreliable source of information as they are not expert into this particular field.
Its better you talk to housing counsellors and homeowners, who can explain you how confusing, time consuming and complex, a mortgage process can be. It has been found by research that more than 50% of borrowers are unaware of the process and around 14% are unfamiliar with it.
A professional mortgage specialist will explain you the process in a clear manner and will explain you step by step details of what is needed for application to close.
Finding a Reliable Mortgage Lender
This has been found by a survey that the problem is not with the lenders, but with the borrowers who are not aware of the basic details related to the process.
Moreover, some borrowers often choose the lender based on an older financial relationship, geographic proximity and other factors such as reputation that are not really relevant to loan’s total cost, the result of which us that borrowers lose the chances of getting the best possible rates.
However, a point to be noted in this regard is that best deal always doesn’t mean the lowest rate. A different loan may carry same rate but with different costs, that undermines the need of learning about variety of loans.
Don’t let enormity of Home loan Scare You
People make smart choices of mortgages daily and get home loans with low predictable and fees, great interest rate, fixed monthly payout. However, it’s important to be well aware of all terms and condition related to a loan so that its payouts don’t bother you and you can repay the amount without any financial burden.
Considering True Cost of Ownership
The sale price which you acknowledge to pay is not the true cost of getting the home. Your first consideration in this respect should be to the schedule of amortization i.e. the total amount of interest and principal that you will be paying by maturity of contract and decide accordingly.
This article has been written by Chris Johnson, and he recommends Maureen Martin. She has over 14 years of experience in U.S. home lending market. She delivers cutting edge lending programs and solutions to her clients and deals in various types of home loans like VA loans, FHA loans, refinance and rescue loans. You can check more details on sandiegohomelender.com.