A number of common mortgage mistakes can be costly. First-time homebuyers may not necessarily understand how complicated the mortgage process is, experts from Tri County Sentry Real Estate say. They urge those who are considering buying a home to avoid making many of the common mistakes that they have seen repeatedly over the years.
Assuming You Will Receive the Advertised Rate
One of the biggest mistakes potential homeowners make is in presuming that the advertised rate is the one they will get. These rates are usually only available to those with excellent credit, and while some applicants will be approved for these rates, many will not be. These rates also often require applicants to pay points, or percentages of the loan amount, in order to get these rates.
Waiting for Better Interest Rates
Another mistake often made is waiting for better interest rates. Real estate agents have seen potential homeowners lose a property to other buyers because they were waiting for interest rates to drop. Instead of worrying about interest rates, agents say, instead try to pay a little extra each month to build up equity faster and lower the overall principal.
Not Comparing Loan Options
Few potential buyers take the time to compare the various loan options different lenders offer. Those who want to find the best deal should speak to several different lending institutions or go through a mortgage broker. A broker pre-qualifies borrowers and compares loan options to find the best one.
These three common errors can result in potential homebuyers either paying more on their mortgage or not getting the property they want.