Common Mistakes People Make When Looking for a Mortgage
Purchasing a spacious home can signal the start of a brand new life for a couple and their young family. However, in the eagerness to move into a beautiful house, the mortgage paperwork can be overlooked, which can have a detrimental effect on the outcome.
If mistakes get made in reading the small print, as a result of rushing or not taking expert advice, then you could end up facing a foreclosure on your property.
So, to help you avoid some basic errors that could prove to be costly, Kraft Mortgages Canada Inc. has put together a list of the most common mistakes people make when looking for a mortgage.
1. Taking the cheapest option
Homeseekers tend to go with the lowest rate from a lender, which is not always the best option as the terms and conditions may not suit you. Also, if the lender is not local, this could pose a challenge as good communication and support are vital.
2. Assuming that all mortgages are similar
As each borrower's situation is different from the next, not everyone can qualify for all the products on the market. Therefore, a broker is in the best position to analyze a client's unique situation and match them with the ideal lender.
3. Assuming brokers play a limited role
Often, home seekers do not know what to expect from their broker, and don't take full advantage of their knowledge. They should ask the broker everything about their loan product and build a rapport to count on them in the future for refinancing and renewals.
4. Emphasizing on the wrong variables
Clients do not know what variables they should consider when getting a mortgage, which could have long term ramifications. Therefore, a broker can help them understand all the numbers and fees associated with the mortgage to avoid surprises later.
5. Taking on new debt
Some clients do not understand debt to income ratio and credit scores, which can negatively impact finding an excellent mortgage. When purchasing a property, home seekers should avoid opening new lines of credit or increasing the limit on their current credit line, which will increase their liabilities. Consequently, it's better to always talk to a mortgage broker before making any major purchases during the mortgage process.
To avoid these and other mistakes, reach out to the experts at Kraft Mortgages Canada Inc. With many years of experience, our team will create the best deal for you.
Our services include home purchase mortgages, financing, renewals, private lending, and 2nd mortgages. We also provide construction financing and commercial mortgages for our clients.
We serve clients across Abbotsford, Delta, Langley, Burnaby, Vancouver, Richmond, Coquitlam, Maple Ridge, North Vancouver, White Rock, New Westminster, and West Vancouver, BC.