Getting a mortgage approved is quite a task, and you must go through several steps. At the end of all these steps, you want to feel satisfaction with what you have gained and not disappointment or regret. To get the right mortgage rate and the best loan for you, you should avoid making the following mistakes-
- Calculate expenditures- when you are looking for a mortgage, remember that you will have to make monthly payments. You must ensure the prices do not take up a huge proportion of your income. If this happens, you will not be left with enough money to run your household throughout the month.
- Homeownership costs- these are costs that you do not think about because of the assumption that they are rare expenditures. However, research indicates that 1-2% of the price of the house ends up being the cost spent on maintenance and repairs. You will also have other expenses like property costs that you will have to pay for. Contrary to popular belief, ownership costs increase with the age of the house. MORE :
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- Not doing enough research is one of the most common mistakes when applying for a mortgage. Individuals fail to look at multiple lenders and instead choose to go with the first lucrative one they see. Make sure that you take the time to find several lenders before shortlisting and deciding on the one best suited to you. Failing to research could lead you to pay more when you could have devoted more time and spent a lot less.
- Ignoring APR- the annual percentage rate or APR is something that you must consider. Several lenders offer low mortgage rates but charge substantial fees to cover this. To avoid paying extra, you must compare the “truth-in-lending forms” of lenders first to check which Mortgage will cost you less.
- Making low down payments- you must put down at least 20% of your borrowed amount to get a good mortgage rate. Otherwise, you will have to pay mortgage insurance, adding about $100 to your monthly payments. The reason for this is so that the lender is insured against the possibility of you not being able to make your payments in full.
- Not fixing credit reports- for you to get a mortgage at a good rate, it is necessary for you to have a good credit history. Before applying for a loan, sit with your broker,, go through your credit history,, and pay off any outstanding payments that will give you a bad reputation. If you do not check this beforehand, you could either have to pay a higher rate, and, in the worst case, your loan could get rejected. Speak with your financial advisor for ways to manage your credit score.
- Not choosing a VA loan- VA loans are the best option, especially for those who have served the country or are currently serving it. These loans guarantee competitive rates and a home that can be moved into immediately. However, the biggest disadvantage of this loan is that there is a funding fee based on how much you are borrowing.
Contact mortgage brokers near you and meet with their representatives to get a good understanding of the process. Best Mortgage Montreal is one such company that offers excellent depending on your budget. They also offers free mortgage insurance for the first three months of repaying your loan. Click on this to request rates and chat with their professionals today.