Common Mistakes People Make When Shopping For A Mortgage

Common Mistakes People Make When Shopping For A Mortgage

Author: Victor Matos | | Categories: Bad Credit Mortgage , Credit Rebuilding , Debt Consolidation , Dental Plans , Disability Insurance , Good Credit Mortgage , Health Plans , Life Insurance Agent , Mortgage Agent , Mortgage Insurance , Mortgage Refinance , Travel Insurance

Travel Insurance Hamilton

Your future home won’t cost you an arm or a leg if you set a proper financial plan. So, before you jump-start the homeownership process, it’s important to understand your financial picture. It will give you an idea of the type of mortgage product you will have to opt for. However, as a house is a significant investment and a mortgage is a major responsibility, it’s advisable to seek guidance from an expert who is well connected with various financial resources, like a mortgage broker. 

They will help you choose the best product and advise you along every step of your homeownership journey. Unfortunately, like most people, you might tend to make hasty decisions with mortgages that could eventually lead to financial hardship. To help you avoid simple missteps in the mortgage process, Victor Matos Mortgage Agent has put together a list of the most common mistakes people make when shopping for a mortgage

1. Getting fixated on an interest rate 
When you opt for mortgages with low-interest rates, you often fail to notice the fine print and the not-very-well disclosed clauses that come with it. Lenders providing such products may not be looking out for your best interest. Therefore, you must discuss with a mortgage broker who knows the advantages and disadvantages of various lenders and their products and can give you advice that will benefit you.

2. Shopping for mortgages on your own
You may not have the skills to choose a perfect mortgage and can only approach a limited number of lenders. But with a mortgage broker, you have the advantage of being connected to several lenders and their products. You can pick out the best mortgage product through them without taking a hit on your credit score.

3. Using multiple mortgage brokers
Nobody likes to work for free, would you like to work for free? We find instances where many clients use two or more mortgage professionals to shop for mortgages while knowing very well to pick one product from them. As a mortgage broker, we are allowed but do not charge you an upfront fee, so you need to be more ethical and value those working for you.

4. Negotiating like a mortgage broker
Would you return part of your salary back to your employer for allowing you to work for them? Of course not! Most brokers work for free, but many clients try to get their mortgage broker to pay them back some of the commission they earn by asking them to perform additional services. Like most mortgage brokers, we put in all the legwork to find you the right product so that you can save on time and money.

5. Hiding financial history
Everything you state relevant to a mortgage, such as income, source of down-payment, or credit history, needs to be proven with supporting documents. However, withholding your financial information can get your mortgage that was initially approved, canceled. To avoid rejection, you must disclose all your past financial statements mistakes as we are not here to judge you, but being upfront with all the details makes it easier to serve you. 

6. Asking for a quick closing
This can put a dent on getting a mortgage as most lenders like banks are extremely suspicious of fast closings. Banks often think that most clients try to get the mortgage closed mostly before losing a job, changing jobs, or making a significant change in their life that would otherwise jeopardize their approval.

To avoid these and other mortgage mistakes, reach out to the experts at Victor Matos Mortgage Agent. As a mortgage agent, insurance, and investment advisor in Hamilton, ON, I will help you find a perfect financial plan that suits your individual goals. I am happy to serve and offer unbiased financial advice so that you make the right business decisions. I provide mortgage and life insurance services to clients across Hamilton, Oakville, Burlington, Binbrook, Ancaster, Brantford, Caledonia, Grimsby, Stoney Creek, Cayuga, Dunnville & St. Catharines, ON.

For a complete list of my services, please click here. If you have any questions about mortgage brokering, personal insurance, and investments, I’d love to hear from you. Please contact me here.