Common Mistakes People Make When Shopping For A Mortgage
Finding the right mortgage that suits your needs and fits your budget requires you to go through several intricate steps. You need to consider the rate of interest, terms of payment, and also other factors such as the lender’s experience and reputation. As a layperson, shopping for a mortgage can be difficult and confusing. Therefore, it’s best to enlist the services of an experienced mortgage agent.
As an experienced mortgage agent, I’ve seen many people commit avoidable mistakes only to regret not hiring a mortgage agent right from the start. To help you steer clear of situations that arise from errors that people commit when dealing with the mortgage process, Victor Matos – Mortgage Agent – Insurance and Investments Advisor has compiled a list of the most common mistakes people make when shopping for a mortgage.
1. Withholding important details
Humans have the natural tendency of trying to impress. Simple questions such as proof of income, what’s the property worth, how is the credit history, are often met with answers that prove not to be true, once confirmation paperwork is requested. It’s important to be upfront.
2. Hiding facts
Nowadays, it’s fairly easy to see if clients own other properties, have co-signed as guarantors to third parties, or have loans or other debts not currently disclosed. When this information is not disclosed, and an application is submitted to potential lenders, it can create an approval that later on results in a cancellation of funding from the lender.
3. Being obsessed with interest rates
A low rate is great but not always the best thing. It’s important to know the reputation of the lender, what other fees they charge, what are the restrictions in their contracts. Getting the lowest rate on a mortgage does not necessarily mean that you are getting the best deal!
4. Dealing with a professional who is desperate for that deal
As sad as it sounds, there are professionals who present very well, but perform poorly and are cash strapped. When a potential client approaches them, that deal needs to close. That urgency can create a rushed application to the fastest lenders, or to the lender who pays the most, regardless of the implications to the client. Choose a professional who is well established in the industry. Choose someone who wants you, but who doesn’t need you.
5. Select your professional, but be careful with shopping around too much
Yes, make your calls, do your interviews, ask appropriate questions, select your representative.
But when you do, stick with him. If I don’t know that I’m submitting applications on your behalf, while someone else is also applying to the same lender without my knowledge, my application is based on what you told me, and it may not match what you may have told someone else.
This may cause the same lender to receive two different stories, which may lead them to reject your application.
6. Taking too long to apply and then rushing for an answer
Yes, I can get a lender to make a proposal sometimes within hours of applying, but if I don’t have a chance to compare with other lenders, what you get may not be the best. For this reason, it’s advisable to be prompt and submit your application early.
To avoid these and other mistakes, reach out to the experts at Victor Matos – Mortgage Agent – Insurance and Investments Advisor. I’ve been in the mortgage and insurance industry for the past several years and I can assist you by assessing different mortgage, or insurance or investment options to find one that suits your requirements the best. I offer mortgage, insurance and investments services, including mortgage services, life insurance, mortgage insurance, travel insurance, critical illness insurance, disability insurance, health and dental plans, savings plans, RRSP and Non-RRSP investments, etc., to clients across Hamilton, Oakville, Burlington, Binbrook, Ancaster, Brantford, Caledonia, Grimsby, Stoney Creek, Cayuga, Dunnville, and St. Catharines, ON.