In this article we are going to go over Mortgage Errors You Should Avoid and how these mistakes can cause you headaches and cost you money down the line if you are not careful. If you think about it a home is the biggest purchase of most people’s lives and you need to make sure you are fully aware of everything you are doing because you can lose money easily. When you have a purchase note of 15-30 years, which is a long time to be dealing with a problem that could be avoided. In the following paragraphs we will be looking at such errors and why they need to be avoided at all cost.
In an effort to identify Mortgage Errors You Should Avoid, one of the worst things you can do is to not shop around. If you are in the market for a new car most people shop around to ensure you get the best deal, well financing on a home is no different. Some lenders may have better rates than others and by paying an extra .25%-.50% can cost thousands over time. For example, if you take a $200,000 30-year loan at 4% interest, the principal and interest would be $955. Now, if you could have shopped around and got 3.5%, your payment would only be $898 which is a savings of $57, $684 per year, or over $20,000 for the course of the loan. If you never refinanced the loan, you just cost yourself $20,000! Also, don’t always think that banks have the best rates because a lot of times they have some of the higher rates offered to potential borrowers.
It is common nature to have questions about a certain situation you don’t have a lot of experience in, and buying a house is no different. Another of the Mortgage Errors You Should Avoid is not getting your questions answered during the mortgage transaction. What I like to tell my borrowers is if they have a question they can ask me and I will get them an answer, I also feel they should consult another party to solidify my answer and put them at ease. If you are a first time home buyer, this could be an overwhelming task, but you need to make sure you are talking to professionals as family and friends more than likely don’t have all the answers as this isn’t their profession. This is a very important Mortgage Errors You Should Avoid.
Another of the Mortgage Errors You Should Avoid is along the same lines as the previous reason that not knowing the process can hinder your buying experience. When you deal with a professional like myself, there is a definite schedule that we deal with and are more than happy to share it with you so that you can know what is going on at every moment of the day. If you are currently dealing with a lender that is keeping you in the dark then you need to reach out to me ASAP (888-900-1020) and I can assist in helping you understand the process and make sure your lender has your best interests in mind.
The final of the Mortgage Errors You Should Avoid is worrying too much about things that do not affect your mortgage. You shouldn’t worry about the location of your lender’s office, making sure you work with a friend of yours, and in general caring about items that aren’t going to affect your payment. What you need to make sure you are caring about is rate and that the loan you get is the best right and right for you. If you get sidetracked by petty items, it can cost you thousands in the long run.
As you can see, you can be proactive in your mortgage transaction and not get caught up in Mortgage Errors You Should Avoid. It is easy for someone to get overwhelmed who is new to this type of transaction. I will admit, this is a very complex transaction and as long as you have a mortgage professional like myself in your corner, you will be just fine in the long term. If you’d like to get started, please call me today at 888-900-1020 or you can visit my website www.loanconsultants.org for more mortgage and real estate articles and information. Anything I can do to help you, please let me know!