Common Mistakes People Make During The Mortgage Process
When searching for a new home, you may get blinded by the number of bedrooms and bathrooms you see. But, there are other factors that are even more important, one of them being actually acquiring the finance for it. If you fail to take this and similar factors into account, you could make a big mistake by jumping the gun.
Before and during the mortgage process, it is important to have everything just right. If you are a first-time homebuyer, you might make several errors during the process that could result in high-interest rates or not getting the mortgage approved. To help you avoid some basic errors that could prove costly, Paul Travers at MORTGAGE ARCHITECTS has put together a list of the most common mistakes people make during the mortgage process.
1. Going directly to the bank
Many people go directly to the bank for their mortgage without checking a broker. Don’t go to the bank, the individuals that they are dealing with, in most cases, are not licensed and haven’t taken the ministry course as they operate under the bank’s license. A mortgage broker works on a compensation basis, and they make sure to disclose the amount they make on your closing statement. A bank, on the other hand, does not work on such a basis and has no requirement of disclosing the amount they make.
2. Signing with a bank without looking for the best rates
Loan officers in a bank are often associated with one institution. This means that they will offer fewer products and might not give you a mortgage that is best for you. People fail to realize this and sign with their bank without checking the rates available from a broker. On the other hand, a mortgage broker works on your behalf to find a lender from their various sources to find a deal best suited for you.
3. Not asking enough questions
People make a mistake where they don’t ask enough questions when they go to the bank, especially about penalties. You have to remember that bank loans often come with stricter lending standards and penalties because they are subject to federal compliance and reporting laws. Remember that loan officers work towards the interest of the bank and will do their best to thwart your attention towards deals that put them first. If you decide to go with a bank for your financing, stay vigilant, and ask many questions just to be safe.
4. Failing to ask about prepayment options
Many people go to the bank and don’t ask enough questions about prepayment options. This leads to them having to pay a prepayment penalty if the borrower pays down or pays off the mortgage before term. Remember to ask as many questions as possible about your mortgage options, and don’t forget to get an acknowledgment for your prepayment.
To avoid these and other mistakes, reach out to the experts at Paul Travers at MORTGAGE ARCHITECTS. With access to more than fifty financial institutions - including major banks, credit unions, trusts and other national and regional lenders - my goal is to design the right mortgage solution for you - with features and options that meet your needs.
What does such expertise and access to a vast financial network cost? It costs you nothing. There are no arranging fees. Instead, the lender we decide on together pays compensation for the services and solution provided, and only after your mortgage has closed. And since my business is built primarily through referrals from satisfied customers, your positive mortgage experience is essential!
My mortgage services include first-time home buyer mortgage, self-employed mortgage, low payments, long amortizations or interest-only, investment property mortgage, etc.
I serve clients across Stayner, Barrie, Innisfil, Bradford, Alliston, Orangeville, Newmarket, Aurora, Vaughan, Caledon, Brampton, Mississauga, Guelph, Kitchener, Burlington, Cambridge, Hamilton, and Brantford, ON.