Purchasing a home is an exciting decision – one of the largest of your life most will agree. It can bring a new community for your children to grow up in, even a change of careers; the opportunities are endless. But before you get wrapped up in anticipation of this milestone, you need to ensure one significant aspect is in place: your financing.
For many people, navigating the mortgage process can be overwhelming and confusing. Our experience has shown us that some common mistakes are made repeatedly amongst homebuyers. We hope that by highlighting these pitfalls, you become more aware and better prepared when it comes time to finalize your mortgage.
Documentation Errors
When working with a mortgage broker, their role is to provide you access to the best mortgage rates and terms available. As a liaison between yourself and potential lenders, they will bear the burden of all the complicated paperwork. Although they will guide you and conduct the filing of documents, you need to ensure that you provide your broker with error-free information.
Common errors on paperwork include:
- Not filling out your full name or other essential information.
- Providing outdated banking information.
- Producing poor-quality scans.
- Leaving application pages blank.
The best way to ensure that your mortgage loan application is not delayed is to provide all required documentation completed and error-free.
Only Focusing on the Interest Rate
While the interest rate does play a significant role in your mortgage selection process, ensure it is not the only factor you consider. A very low mortgage rate might save you some money, but it will likely come with strict qualification requirements, inflexible terms, and significant penalties for deviating from the loan terms. By taking a comprehensive look at the terms and conditions of your mortgage, you can select the most appropriate option.
Not Paying Attention to the Fine Print
A mortgage is a monumental financial obligation, and as such, it comes with some serious responsibilities. You need to be highly diligent in reading and understanding the fine print of the agreement. Many homebuyers think they will adhere to the mortgage terms until completion, but it is common for borrowers to break the terms.
A professional mortgage broker will ensure that you completely understand the terms and conditions before signing. Make sure to utilize their expertise and ask questions when needed. it could save you thousands of dollars!
Making a Rushed Decision
A hot market naturally causes a sense of urgency amongst buyers, and they might fear that a home they desire will go to someone else. As a result, borrowers often secure loans way too fast and for a far larger amount than they can afford. A mortgage is usually the most significant financial liability you will assume, and it deserves a thoughtful, careful, and informed decision-making process.
Underestimating the Added Costs of Homeownership
Once you become a homeowner, the bills will start rolling in very quickly. In addition to your mortgage payment, there are numerous costs associated with purchasing a home – potential repairs, utilities, living expenses, property taxes, insurance, strata fees, and even strata or homeowners association fees.
Lenders are not concerned with anything beyond the mortgage payments. So make sure you compile an accurate forecast of potential homeowner-related expenses before committing to any mortgage loan.
Professional Mortgage Solutions
Whether it is your first time buying a home or you’ve been through the process before, avoiding these common mistakes is critical. If you are looking for professional assistance with the mortgage process, our expert mortgage brokers can help. Our team has more than 40 years of industry experience and specializes in streamlining mortgages, so visit our website or call us at 519-735-1440 today.
