Most Common Mistakes People Make When Obtaining a Mortgage
For most people, obtaining a mortgage is the only means of achieving home ownership. To help you get a mortgage in the quickest possible time and with fewer challenges, here’s a list of common mistakes to avoid when applying for a mortgage.
1. Not getting a “true” pre-approval. A true pre-approval involves getting as much information and as many supporting documents as possible to your mortgage consultant ahead of time. If you’ve received a pre-approval from a bank or broker without doing so, your mortgage application may not be valid.
2. Not discussing the property details with your mortgage consultant. Most lenders have different policies based on the type of property you are buying which could affect the size and type of mortgage you could be approved for. If you have gotten pre-approved for a condo purchase in downtown Vancouver, but you change your mind and buy a home outside the lower mainland, it could vastly impact your approval. Always discuss what type of property you are buying with your mortgage consultant before you buy.
3. Not discussing where your down payment is coming from with your mortgage. consultant. One of the most common mistakes clients make is assuming that lenders won’t check where your down payment is coming from. If you plan to receive a gift or transfer funds from a line-of-credit to go towards your down payment, be sure to discuss it with your mortgage consultant because most lenders have different rules around their down payment requirements.
4. Taking the first rate the bank offers you. If you’ve banked with the same company your whole life, it may seem like the natural choice to use that bank for your mortgage. However, posted rates from banks are often much higher than rates that mortgage consultants have access to. Get a second opinion from a mortgage consultant to make sure the rate you’ve been offered is competitive.
5. Making large purchases before the mortgage closes. Lenders will often run credit checks to make sure you can still afford the mortgage you were approved for. If you take out a lease on a new car or make other large purchases with credit, the lender may have the right to revoke your approval.
To avoid mistakes like these, reach out to me at firstname.lastname@example.org. I strive to provide outstanding service as well as a variety of mortgage options and borrowing solutions for my clients. To learn more about the services I provide, please click here. If you have any questions about obtaining a mortgage, get in touch with us by clicking here.