Common Mistakes People Make When Applying For A Mortgage
While applying for a mortgage is in itself an intricate process, committing a mistake can further complicate the process and jeopardize your chances of obtaining the mortgage you want. Therefore, it’s advisable to enlist the services of a mortgage broker to assist you with the procedure from start to finish. An experienced mortgage broker can walk you through the process smoothly and help you dodge mistakes that could cost you thousands of dollars. To help you steer clear of these errors, Leanne Gould Mortgage Broker has compiled a list of the most common mistakes people make when applying for a mortgage and how to avoid them.
1. Clients payoff and CLOSE credit facilities
You might want to ask how this is a mistake. Lenders use your active credit history to help evaluate your abilities to pay back debts. If you have closed all your credit facilities, then your credit score no longer grows, and in fact, you can damage your scores as once a facility is closed, the repayment history is gone. Clients are left to reapply for credit, another credit hit, as well as appear to be new to credit. Do NOT close any accounts until you have met with your mortgage broker and have developed a plan that will benefit you. If the accounts were very recently closed, sometimes you can ask to have the account reinstated and save the history.
2. Not reading the terms or understanding them
Rate is not always the most important thing to consider when applying for financing. Some lenders offer super low rates, but the devil is in the details. Can I pay this out early, how is the penalty calculated, can I make extra payments, if I have to move can I port my mortgage, can I port if I am leaving the province, are there fees to get this mortgage? Answers to these questions show you whether the mortgage product is right for you or not. The best way to fix a situation like this is to know what you are signing by asking questions. A mortgage is a legal and binding contract. Education is key to your protection
3. Impulsively buying a house
Another common mistake is when clients impulse-buy and are wowed when they walk into a professionally staged home. It is easy to get lured into purchasing a beautifully staged home, and we’ve seen many who are guilty of committing this mistake. It is good to write down the good and the bad during viewing and remember, your furnishings will be in there, so take a minute to breathe and picture your family and your personal items and not some fake setting. Impulse buying costs so much more.
To avoid these and other mistakes, reach out to me at Leanne Gould Mortgage Broker. As a dependable and seasoned mortgage agent, I offer a variety of mortgage services to clients across Wetaskiwin, Ponoka, Bashaw, Lacombe, Blackfalds, Rocky Mountain House, Sylvan Lake, Red Deer, Stettler, Innisfail, Bowden, Olds and Didsbury, AB, and across Canada. My services include construction or draw mortgage, mortgage renewals, mortgage refinance, home equity lines of credit, business for self mortgage, rental property finance, and alternate or private lenders and others. I can help clients sieve through their mortgage options and look for a mortgage product according to their needs and wants.