Common Mistakes People Make While Obtaining A Mortgage
As a homebuyer, when shopping for a mortgage, knowing how to get a prompt approval is a crucial step for homeownership. However, as the mortgage industry guidelines are ever-changing, understanding it can be challenging for a layperson. Moreover, being inexperienced in the subject may lead you to fall for inaccurate information that could complicate your mortgage approval process. To help you avoid making some basic mortgage errors that could prove costly, Robin Klassen Mortgage Professional has put together a list of the most common mistakes people make while obtaining a mortgage.
1. Falling for a bank’s mortgage renewal offers
As a mortgage broker, I’ve seen many customers heading to their bank for a mortgage renewal and confidently signing for a new term without checking the offered term or rate. This happens when you instantly fall for a lucrative deal without reading the fine print, assuming that you’ll be saving on money. Fortunately, mortgage agents are unlike banks, with their connections to several lenders, they have access to a wide range of mortgage products. This makes finding a mortgage suitable for your financial situation more manageable.
2. Not opting for a mortgage broker
If the bank you wish to lend declines your mortgage application due to a fault or other reasons, it shouldn’t be the end of your mortgage journey. In such a situation, you can still secure a mortgage by contacting a mortgage broker. No matter the circumstances, these agents will try to provide you with a mortgage option that could help you with your homeownership needs.
3. Believing that banks offer the best rates
Most banks can only provide a reduced amount of mortgage products and a fixed rate and term. Unlike a bank with a mortgage broker, you can avail of unlimited mortgage options and a suitable rate and term.
4. Thinking that brokers only work for clients who can’t qualify
Most people accept that mortgage agents only help clients who fail to be eligible for a mortgage. On the contrary, mortgage brokers offer their service to any individual with any mortgage scenario. If you go with an agent, you will not only receive a personalized mortgage, but they will even handle all the leg work required for your mortgage application.
5. Misunderstanding mortgage policies
The bank approves not all mortgage policies as policies differ with various lenders. So what your bank may disregard another lender could recommend for your mortgage situation.
6. Believing that mortgage brokers know-it-all
Mortgage brokers do work closely with the mortgage industry but don’t imply they are experts about them. But through their acquired knowledge, they can help you find a mortgage solution that can save you time and money.
To avoid these and other mistakes while obtaining a mortgage, reach out to Robin Klassen at Robin Klassen Mortgage Professional. I’m an experienced mortgage broker from Chilliwack, BC, with over nineteen years of experience providing hassle-free mortgage processes to my clients. I’m associated with Dominion Lending Centres Canada’s leading mortgage company that allows me to offer a wide range of mortgage products to suit your unique needs. You can avail of my mortgage service across Chilliwack, Agassiz, Harrison Hot Springs, Hope, Abbotsford, The Fraser Valley, Langley, Aldergrove, Mission, and the surrounding areas.