In order to purchase a home, many buyers need to purchase a mortgage. If you make mistakes when it comes to your mortgage, you may be left without your dream home and probably a little bit confused. Here are the top five mistakes you should absolutely avoid with your mortgage.
Thinking You Automatically Qualify
Mortgages are extremely complex and there are a number of components when it comes to the application process. One mistake buyers make is automatically thinking they qualify without getting a pre-approval. Here are a few reasons you might not qualify and what you can do about it. (We will add a link to the mortgage denial blog when it’s up)
If you want an idea of how much you can afford, the best thing to do is get a quote. Even if you have bad credit, brokers like Morgix focus on getting you the mortgage you need.
You Focus Too Much On Rates
If you focus too much on low rates, you could be missing out on hundreds of thousands of dollars. Interest rates are only a small fraction of the entire mortgage. Try to focus on the mortgage as a whole rather than the interest alone. In fact, there are even mortgage options that allow you to renegotiate your interest rate later on. Talk to your mortgage broker about fixed rate vs variable rate mortgages to learn more.
Overlooking Additional Expenses
Yes, it’s essential to pay as much as you can to get the best mortgage possible, but don't clean out your bank account just yet. After the sale closes, you will have to pay additional fees. If you
clear out your account, you could be left out of luck anyway!
Not Looking At Different Mortgages
Make sure you work with a trusted broker. A trusted broker will show you a variety of different mortgages and explain each of them with complete transparency. Some buyers quickly jump in
with the very first mortgage they see. This is dangerous and you might miss the fine print or miss out on a better mortgage that you overlooked.
Having all the right documents when it comes time to apply is essential. If you don't have all the right information and documentation, you won’t even be able to apply for your mortgage. Some of the paperwork you need includes: years of tax returns, proof of income, assets and bank statements, credit report, and valid identification. Speak to your mortgage broker about getting all your paperwork in order before you start applying.
To make sure you’re on the right track with your mortgage application and for all the best options, call your Canadian mortgage experts at Morgix! Apply now or call us today for your free consultation! When you have a mortgage with a broker like Morgix, your options are always endless. Whether you need to refinance, are looking for a home equity loan, or a second mortgage, Morgix can help get you approved with over 100 lenders. We make sure our clients understand their options and are well prepared at each step along the way!