Five Common Mortgage Mistakes To Avoid

The fact that there are many different factors involved in getting a mortgage leaves the door wide open for making mistakes.  Some mortgage mistakes won’t really have too negative an impact, while others will cause a lot of expense as the mortgage matures.

Here are five common mistakes people make when getting mortgages.

1.    Ignoring the Rates

Mortgage rates are changing all the time, sometimes within the same day.  When you are seeking a mortgage, assuming that rates are going to be the same when you sign, as they were when you started looking is a big mistake.

Before you finalize your mortgage and sign your name, verify that the mortgage rate that you agreed upon is in fact the one that will be applied to your mortgage.

2.    Not Shopping Around

Rates and fees vary among lenders, just like they do with car insurance providers.  Many people assume that all lenders are required to quote the same rates and fees, but this is necessarily the case.

Take the time to shop around, and don’t be afraid to negotiate a little on your own behalf.  There are many different lenders out there, all vying for your business.  If you want to simplify the process, consider using a mortgage agent or broker.

3.    Not Knowing Basic Terms

It’s a good idea to know most if not all of the basic mortgage terms when you’re trying to get a mortgage.  Not knowing may increase confusion and you might miss something as the process rolls along.

If you aren’t using an agent, take the time to educate yourself so you are in the know.

4.    Forgetting About Closing Costs

Once you get a mortgage and the whole process is set in motion, it’s easy to let your excitement get the better of you.  Along with your down payment, closing costs are also factored into the mortgage.  Ask your lender ahead of time and you might get an estimate of what this number will actually be.

Take a good look at all of the fees you have to pay, and don’t be afraid to ask what they are if you don’t know.  It is you that is going to be paying it all back, after all.

5.    Choosing the Wrong Mortgage

There are many different mortgages and mortgage products out there, and it’s pretty easy to choose the wrong ones if you don’t know what you’re doing.  In most cases, taking a look at your future plans will help guide you.  If you plan to move to another city or country in 10 years, choosing a 30-year mortgage might not be the best option.

Take your financial and lifestyle situations into consideration and you will choose the right mortgage more often than not.  Don’t be afraid to ask for a little help if you need it, too.

This post is brought to you by Henry Stiller. He relies on http://www.bensonmortgages.ca/. They provide expert tips and advice on home mortgages and offer a dedicated team of brokers to find clients the best mortgage rate in Toronto.

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