Common Mortgage Mistakes You Should Avoid

Common Mortgage Mistakes You Should Avoid

Buying a home is an exciting and emotional process. However, it can also be overwhelming, especially when it comes to the mortgage process. Even small mistakes can cost you thousands of dollars over the life of your loan. In this blog post, we will discuss some common mortgage mistakes you should avoid.

1. Not Getting Pre-Approved

One of the biggest mistakes homebuyers make is not getting pre-approved for a mortgage before shopping for a home. Pre-approval helps you understand how much house you can afford, and it also gives you an advantage when making an offer on a home.

2. Not Checking Your Credit Score

Your credit score plays a crucial role in the mortgage process. It determines the interest rate you will receive and the overall cost of your loan. Before applying for a mortgage, you should check your credit score and take steps to improve it if necessary.

3. Not Understanding the Loan Terms

When you are offered a mortgage, it is essential to read and understand the loan terms before signing the contract. You should know the interest rate, loan amount, monthly payments, and any other fees associated with the loan.

4. Borrowing More Than You Can Afford

Buying a home is a significant financial commitment, and it is essential to consider your monthly expenses before taking on a mortgage. You should only borrow what you can afford to pay back each month.

5. Skipping getting a building report

A building report is an essential part of the home buying process. It can uncover potential issues with the home that may be costly to repair. Skipping getting a building report could result in unexpected expenses down the road. Getting a report can allow you to future budget for on- going maintenance and repairs but also allow you access to information to further use in your negotiation

6. Making Big Purchases Before Settling

Before settling on a home or going unconditional, it is essential to avoid making big purchases that could affect your credit score or debt-to-income ratio. Large purchases can impact your ability to qualify for a mortgage or could result in a higher interest rate.

7. Not Refinancing When It Makes Sense

If interest rates drop, it may be a suitable time to refinance your mortgage. Refinancing can help you lower your monthly payments and save money over the life of your loan.

In conclusion, the mortgage process can be complex and stressful, but avoiding these common mistakes can save you time, money, and headaches. Working with a trusted mortgage lender and seeking professional advice can help you navigate the process and make the best decision for your financial future.

Beryl – Welcome to the Bricks & Mortgages website. At Bricks & Mortgages we pride ourselves on providing you with professional advice on reducing your mortgage and getting ahead in the property market.

Our team has years of combined mortgage broking and lending experience. We will have an ongoing relationship with you for the lifetime of your loan, including an annual review of your financial goals.