Cheryl Zhao

Getting a mortgage is for most people the biggest money transaction they’ll do in their lifetime. Making mortgage mistakes can get you into some serious money trouble, this is why it’s important to take all precautions so that you don’t lose any money you shouldn’t be losing. Here are the biggest 9 mortgage mistakes to avoid You are not preparing properly for your new mortgage Don’t apply for a mortgage without shopping different lenders, having all of your paperwork together, and making sure your credit report is alright. This can be one of the most costly mortgage mistake, since lenders will offer different deals and shopping for the most cost-effective ones makes sense, especially when dealing with so much money. It’s a bit amusing to see how much shopping and couponing the regular American does, but, when it comes to huge purchases, people start getting reckless. Getting the wrong home loan There are so many different types of loans and it is very important that you get the one that fits your needs. Some lenders get used to doing the same loans and try to push everyone into the same product. Don’t let this happen to you. If you plan to be in the home for just a few years, you may want to go with an adjustable rate mortgage, taking advantage of the attractive initial rate. Perhaps you plan to relocate in a couple years or move up to a larger house. However, if you plan to live in this home for a long time, you may be better served with a fixed rate loan. You will pay a higher rate, but you won’t have to worry about large payment increases that can happen as rates increase. Whatever the type of home loan you fits your needs, make sure […]