Common Mistakes Those New to Mortgages Make
The process of obtaining your first mortgage can be very overwhelming. There are a lot of options to consider and many steps to follow. When you have more questions than answers, mortgage brokers can help you find solutions that you may not have seen.
Applying for your first mortgage can be a lengthy process that involves several steps, some of which are complex and require guidance from experts in the field. To help you along your path to a mortgage, I have listed some of the most common mistakes mortgage newbies make.
1. Not paying adequate attention to pre-approval. The most common mistake buyers commit is going house shopping without getting a pre-approval. Without a pre-approval, you don’t know what you qualify for, and what the payment may be. The worst-case scenario is that you could fall in love with a home you can’t afford. A pre-approval gives you a basic idea of what your mortgage should be, so you know the price range to look at. Although it does not necessarily mean that you will get the final approval. Pre-approvals can be done quickly so as not to hold up your house hunting.
2. Going to the bank instead of a mortgage agent. While your bank is limited to a small selection of mortgage offerings that may not necessarily match your needs, a mortgage agent has access to multiple lenders and multiple options that can be customized to suit your requirements. Also, the lender pays the agent, so their service is FREE for you to use.
3. Not securing a rate hold. A rate hold is a guaranteed interest rate held for a maximum of 120 days. You can shop with confidence knowing that your rate won’t increase during this period. If there is a better rate available when you go to purchase, then the agent will adjust your mortgage accordingly, even if it is with a different lender.
4. Ignoring the importance of referrals. Mortgage brokers do more than just get you a great interest rate. They take pride in having many connections within the real estate community. Referrals are more reliable than randomly choosing someone for the job, which is why it is always advisable to ask for referrals for the completion of a real estate transaction. References from mortgage brokers to partners like lawyers, inspectors, appraisers, and realtors could save you hundreds, if not thousands of dollars!
5. Not asking enough questions. Questions are never too silly, small or complicated. Ask your mortgage agent multiple questions. This will ensure clarity, and that nothing is missed out. A mortgage broker takes great pride in helping make your purchase, sale or renewal easy to understand and simple. So go ahead and get answers to all those nagging questions that have been plaguing your mind.
6. Relying on your bank teller to give you mortgage advice.No matter how friendly and helpful your bank tellers are, they aren’t mortgage professionals. At Quickfire Mortgage Solutions, mortgages are all we do! As a licensed mortgage professional, I can educate you on the in’s and out’s of buying the largest investment you will own. We care about you, your family and the place you call home. We are experts in navigating the complex and ever-changing landscape of mortgages in Canada.
To get a mortgage that's right for you, reach out to Quickfire Mortgage Solutions. As a leading mortgage broker in Edmonton, Sherwood Park, St. Albert and the surrounding areas, I can help you with all your mortgage requirements. I can assist you with everything with pre-approval,refinance, a mortgage renewal and so much more. To learn more about the services I offer, please click here. If you have any questions regarding mortgages, I would love to hear from you. Please contact me here.