Your First Mortgage: Avoid These Easy Mistakes

Posted on: 23 March 2018

Home ownership is a far off dream for many people, but if you're finally in a financial position to purchase property, you're probably excited. However, the journey to sleeping in a house you personally own is not always easy. One reason for stress could be the mortgage.

A mortgage is similar to other loans, but the process can sometimes prove harder than with other loans because of the duration of it. Most people ask for a 15- or 30-year loan; this will take some serious vetting by mortgage lenders, and even when you get a loan, you'll need to behave responsibly to make payments and keep your home. Avoid these mistakes.

1. Waiting

The prospect of securing mortgage approval may seem more frightening than visiting houses and getting to know what you want. However, putting off the mortgage service process will only stress you further later, especially if you really want a specific property. Secure your lender, get approved, and feel relief as you search for things you're financially able to get.

2. Attempting to Hide Things

Friends or relatives may give you the advice to "keep mum" about certain financial aspects of your life. Your business loan or bankruptcy may seem irrelevant to your current activities. However, lenders will be checking as much of your finances as they're able. If they're able to locate information you haven't mentioned, they could find you to be less trustworthy than you'd like. Remain honest, and give them as many details as you have. You could become surprised to discover that there are some programs specifically for people with your financial difficulties or situations.

3. Buying for the Home

When you've gotten to a house you really love and have offered something to a seller, you may feel optimistic about your chances. You may begin to purchase beautiful patio furniture or take out a loan for a pool that you're planning. These could be grave errors. The lender may run a financial check again, and finding all this new financial situation could cause them to question your financial situation. They might consider it to be changed. Therefore, do your best to keep all spending to a minimum if you can.

4. Working without a Realtor

You should be wary of a situation where a property is being sold without a realtor. While the seller can save some money that way and might be very honest, a buyer's realtor can help you get the best price for a house you're looking into. By comparing some of the area's recent sales with the asking price and using their personal expertise to evaluate the offers you make, they may be able to get you a lower price that will therefore mean you don't have to take out as large of a mortgage as you would otherwise.

Be smart when seeking out a mortgage and home. Work with professionals and use these mortgage-related pointers for guidance