Mortgage Application: 4 Seemingly Small But Costly Mistakes You Could Make

Mortgage rate

Home ownership is no doubt one of the smart financial choice anyone can make. In the home buying process, the most vital step is financing; a mortgage being the most popular option.

However, many are unfamiliar with the tricky mortgage process, and they end up making costly mistakes, which can be avoided altogether. Here are some of those mistakes, explained by Altius Mortgage Group.

Failure to shop for the best loan

Although many people are known to be deal hunters, still large number don’t take their time to check and compare different lenders thoroughly. They assume all mortgage products, rates, and terms are alike and therefore, they only consider one lender or broker.

However, devoting your time to find the best mortgage fees and interest among dozens of lenders can save you thousands of dollars.

Putting no or minimal down payment

Due to the unquestionable revolution in the mortgage industry, several mortgage products allow buyers to pay no down payment or very little of it. This seems fantastic. But, it is actually a mistake.

Paying substantial down payment goes a long way by not only in ensuring you get the lowest mortgage rates in Utah but also cut down additional costs such as insurance cover.

Allowing pre-approval to set your budget

Many buyers make a mistake of adopting pre-approval winning amount as their budget. Just because you qualify, it doesn’t mean it is necessary. Going for the maximum can make the home buying a regrettable affair as you risk committing almost all your income to house related cost.

Remember, other financial demands such as school fees, retirement savings, and emergencies will come knocking despite you financing the mortgage.

Not securing your mortgage from a local company

Real estate is local. It is a wise idea to explore mortgage lenders and agents within your area. This will go a long way in helping you get quality and accurate advice as well as recommendations from professionals who have experience and familiar with the locality.

Mortgage process scares away many people as is perceived to be complicated. However, understanding the above pitfalls can help you navigate through the process with the least hurdles.